Louisville, Ky.-based post-acute services provider Kindred Healthcare has proposed offering $1.35 billion of senior unsecured notes and to use the proceeds to fund the acquisition of Atlanta-based home health and hospice services provider Gentiva Health Services.
In October, Kindred and Gentiva reached a definitive merger agreement, under which Kindred will acquire Gentiva in a transaction valued at $1.8 billion. However, the acquisition still requires regulatory approval, and the deal is expected to close in the first quarter of 2015.
Prior to completing the transaction, the notes will be the senior secured obligations of Kindred Escrow Corp. II, and after the transaction closes the notes will be assumed by Kindred and unconditionally and fully guaranteed on a senior unsecured basis by Kindred's fully owned subsidiaries, including Gentiva.
More articles on healthcare finance:
St. Joseph's Hospital Health Center sees $8.2M loss
CFOs cite layoffs as one way of offsetting healthcare costs next year
Fitch upgrades rating on Bon Secours Health System's bonds