8-K: Current report filing
Published on September 12, 2008
Exhibit 99.1
Omega
Transfers Operations of 13 Facilities to Affiliates of Formation Capital;
Genesis Healthcare to Manage
TIMONIUM,
Md., Sep 08, 2008 -- Omega Healthcare Investors, Inc. (NYSE:OHI) today announced
that it completed the operational transfer of 13 skilled nursing facilities to
affiliates of Formation Capital ("Formation"), in accordance with the terms of
the Master Transaction Agreement dated August 6, 2008 and previously disclosed
by the Company on August 7, 2008. The facilities were formerly leased to Haven
Eldercare, but had been taken over by Omega on July 7, 2008. The 13 facilities
are located in Connecticut (5), Rhode Island (4), New Hampshire (3) and
Massachusetts (1). As part of the transaction, Genesis Healthcare ("Genesis")
has entered into a long-term management agreement with Formation, to oversee the
day-to-day operations of each of these facilities. Two remaining facilities in
Vermont will transfer upon the appropriate regulatory approvals expected
sometime in the near future.
Terms and
conditions of the transaction are essentially consistent with the Master
Transaction Agreement as previously disclosed.
Genesis
is a leading healthcare provider with more than 200 skilled nursing centers and
assisted living communities in 13 eastern states, including each of the five
states in which these facilities are located. Formation Capital is an
experienced equity investor in the senior housing industry with economic
interest in more than 300 healthcare facilities.
The
Company is a real estate investment trust investing in and providing financing
to the long-term care industry. At June 30, 2008, the Company owned or held
mortgages on 252 SNFs and assisted living facilities with approximately 28,794
beds located in 29 states and operated by 26 third-party healthcare operating
companies.
This
announcement includes forward-looking statements. Actual results may differ
materially from those reflected in such forward-looking statements as a result
of a variety of factors, including, among other things: (i) uncertainties
relating to the business operations of the operators of the Company's
properties, including those relating to reimbursement by third-party payors,
regulatory matters and occupancy levels; (ii) regulatory and other changes in
the healthcare sector, including without limitation, changes in Medicare
reimbursement; (iii) changes in the financial position of the Company's
operators; (iv) the ability of operators in bankruptcy to reject unexpired lease
obligations, modify the terms of the Company's mortgages, and impede the ability
of the Company to collect unpaid rent or interest during the pendency of a
bankruptcy proceeding and retain security deposits for the debtor's obligations;
(v) the availability and cost of capital; (vi) the Company's ability to maintain
its credit ratings; (vii) competition in the financing of healthcare facilities;
(viii) the Company's ability to maintain its status as a real estate investment
trust; (ix) the Company's ability to manage, re-lease or sell any owned and
operated facilities; (x) the Company's ability to sell closed or foreclosed
assets on a timely basis and on terms that allow the Company to realize the
carrying value of these assets; (xi) the effect of economic and market
conditions generally, and particularly in the healthcare finance industry; and
(xii) other factors identified in the Company's filings with the Securities and
Exchange Commission. Statements regarding future events and developments
and the Company's future performance, as well as management's expectations,
beliefs, plans, estimates or projections relating to the future, are
forward-looking statements.
Omega
Healthcare Investors, Inc.
Dan
Booth, Chief Operating Officer
410-427-1700
or
Bob
Stephenson, Chief Financial Officer
410-427-1700