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HEALTH AND REHABILITATION PROPERTIES TRUST ANNOUNCES APPROVAL OF AMENDED MERGER AGREEMENT OF HORIZON AND GREENERY

 NEWTON, Mass., Sept. 23 /PRNewswire/ -- Health and Rehabilitation Properties Trust (NYSE: HRP) today announced that it has approved an amendment to its previously announced agreement which facilitates the merger of Greenery Rehabilitation Group, Inc. (NYSE: GRG) into Horizon Healthcare Corporation (NYSE: HHC).
 On Aug. 2, 1993, HHC and GRG announced their agreement to merge. GRG currently leases 13 healthcare facilities from HRP. The prior agreement required, simultaneously upon the merger, that HHC purchase, for $58.7 million, 50 percent limited partnership interests in eight facilities leased to GRG.
 Under the agreement announced today, HHC's purchase partnership interests in facilities leased to GRG has been eliminated. Instead, at the time of the HHC/GRG merger, HHC will purchase two facilities for $22 million. Also, HRP will grant HHC the option to purchase at the rate of one facility per year any or all of the remaining GRG facilities which will be leased to HHC after the merger. The sale prices of all the facilities to be sold by HRP to HHC will be about equal to HRP's acquisition costs and the sales, when they occur, are not expected to have material impacts upon HRP's financial results. Other terms of the HHC/GRG merger and of HRP's approval of the merger have remained essentially unchanged from those previously announced.
 David J. Hegarty, executive vice president and chief financial officer of HRP, made the following comments on the agreement announced today:
 "The important result of today's agreement is that it removes any financing contingency from the proposed merger of Greenery into Horizon and from the transactions between Horizon and HRP. Cash on hand in Greenery and credit facilities available to Horizon are sufficient to purchase the buildings Horizon has agreed to acquire, whether or not Horizon decides to access the capital markets. It is in the best interest of Horizon, Greenery and HRP, that this transaction proceed without a financing contingency. Also, the fact that any purchases of HRP's facilities by Horizon will be staggered over several years means that HRP will have time to reinvest sale proceeds and that HRP's cash flow will not be adversely impacted by discontinuance of these rents."
 The HHC/GRG merger and the transactions between HHC and HRP remain subject to several contingencies, including health regulatory approvals; but that are expected to close on or about Nov. 30, 1993.
 Health and Rehabilitation Properties Trust is a real estate investment trust headquartered in Newton, Mass., which invests in healthcare related real estate. At this time, HRP has investments and previously announced commitments totalling approximately $427 million in 93 facilities located in 22 states and operated by over 20 tenants and mortgagors.
 -0- 9/23/93
 /CONTACT: David J. Hegarty, executive vice president of HRPT, 617-332-3990/
 (HRP GRG HHC)


CO: Health and Rehabilitation Properties Trust; Horizon Healthcare;
 Greenery Rehabilitation Group ST: Massachusetts IN: HEA SU: TNM


CM-DD -- NE017 -- 0574 09/23/93 17:42 EDT
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Publication:PR Newswire
Date:Sep 23, 1993
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