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Kindred details additional closings for skilled nursing facility business sale

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Kindred details additional closings for skilled nursing facility business sale

Kindred Healthcare Inc. completed additional transaction closings related to its agreement with BM Eagle Holdings LLC to sell its skilled nursing facility business.

BM Eagle is a joint venture led by affiliates of BlueMountain Capital Management LLC.

Since Oct. 1, the closings included 12 skilled nursing facilities and one assisted living facility, with sale proceeds totaling about $31 million.

To date, Kindred has completed the sale of 80 skilled nursing facilities and five assisted living facilities for aggregate proceeds of about $658 million.

Certain of these remaining six facilities are likely to be sold outside of the agreement with BlueMountain, because in some cases, other parties have exercised rights of first refusal or similar rights to purchase.

Kindred expects about $27 million of additional net proceeds from the sales of the remaining facilities. The completion of the remainder of the sales are subject to final documentation and customary conditions to closing.

The company expects the rest of the closings will take place as regulatory and other approvals are received over the rest of 2017 and in the first half of 2018. It also has for sale a parcel of real property and various certificates of need related to its skilled nursing facility business that it expects will generate additional proceeds between $7 million and $10 million.

Kindred's sale of the skilled nursing facility portfolio to BlueMountain included 89 nursing centers and seven assisted living facilities in 18 states. Of these facilities, 36 were or continue to be leased from Ventas Inc. and Kindred has an option to acquire the real estate of the Ventas Properties for an aggregate consideration of $700 million.

As it closes on the sale of the Ventas Properties, Kindred will pay to Ventas the allocable portion of the $700 million purchase price for the Ventas Properties and the real estate for the applicable Ventas Property will be conveyed to BlueMountain or another designee.

In connection with the closings described above, Kindred paid about $77 million to Ventas for five Ventas Properties that were included in the closings. To date, it has paid about $647 million to Ventas for the Ventas Properties involved in all of the completed closings.