Irvine, CA-based Sabra Health Care REIT Inc. has been pursuing a sale of the 36 Skilled Nursing facilities and two Senior Housing communities that it owns that are currently operated by Senior Care Centers. On December 5, 2018, the company entered into a purchase and sale agreement to sell the Senior Care Centers Facilities for an aggregate purchase price of $385 million, all of which is payable in cash by the purchaser at closing.
“We expect to complete the sale of the Senior Care Centers Facilities in early 2019, though there can be no assurances that the sale will be consummated on the foregoing terms or timing or at all. During the three months ended September 30, 2018, we issued to Senior Care Centers notices of default and lease termination due to non-payment of rent under the terms of the related master leases for the Senior Care Centers Facilities. As a result, deposits were fully exhausted to pay contractual rents and Senior Care Centers is currently operating the Senior Care Centers Facilities on a month-to-month basis.”
On December 4, 2018, Senior Care Centers filed a petition for relief under Chapter 11 of the United States Bankruptcy Code in the Northern District of Texas.
Commenting on these developments, Rick Matros, CEO and Chairman, said, “We are pleased with the progress we have made on our planned disposition of the Senior Care Centers Facilities. The purchase price of $385.0 million is slightly higher than the $377.5 million upfront portion of the purchase price previously announced. We determined it was in our best interest to forego a potential earn-out opportunity that may or may not be realized at some future date and instead receive more cash up front. We do not expect Senior Care Centers’ bankruptcy filing to have a substantive impact on our disposition of the Senior Care Centers Facilities.”