GEN - Genesis Healthcare lays restructuring plans on a path for recovery

Genesis Healthcare (GEN) gains 5% premarket after announcing a three-part strategic restructuring plan to strengthen its liquidity position and capital structure. First, Genesis has agreed to terminate its master lease covering 51 facilities, leased from affiliates of Welltower. In return, it will receive ~$86M and debt reduction of ~$170M. Second, Genesis has secured a $50M debt investment from ReGen Healthcare, which converts into equity representing a 25% ownership interest. ReGen Healthcare also has the option to invest additional $25M by April 15.Third, the Company will voluntarily delist its Class A common stock from the NYSE and deregister its Common Stock under the Securities Exchange Act of 1934. Following the deregistration, the Company anticipates that its Common Stock will be quoted on the OTC Pink Market. The Company expects to file its 2020 Form 10-K by March 16, 2021, but it will not distribute a Q4 2020 earnings release or host a conference call.

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Genesis Healthcare lays restructuring plans on a path for recovery