Mariner Health Care Announces Agreement to Terminate Leases Relating to Seven Florida Facilities
October 27 2003 - 6:46PM
PR Newswire (US)
Mariner Health Care Announces Agreement to Terminate Leases
Relating to Seven Florida Facilities ATLANTA, Oct. 27
/PRNewswire-FirstCall/ -- Mariner Health Care, Inc. ("Mariner")
(BULLETIN BOARD: MHCA) announced today that it has entered into a
definitive agreement with its current landlord to terminate seven
capital leases with respect to skilled nursing facilities ("SNFs")
located in the State of Florida. The SNFs have 840 licensed beds.
The termination of the capital leases will result in the
elimination of approximately $30 million in Mariner's indebtedness.
The landlord will enter into management agreements with affiliates
of Sovereign Healthcare Holdings, LLC ("Sovereign") to manage six
of the seven SNFs. The remaining SNF will not be managed by
Sovereign. Sovereign is a recently formed entity that leased
nineteen of Mariner's former Florida SNFs following their sale to
Formation Capital, LLC and Longwing Real Estate Ventures, LLC
effective October 1, 2003. The consummation of the proposed
transaction is expected to occur on or about November 30, 2003,
subject to satisfaction of customary closing conditions, including
but not limited to, regulatory approvals. Mariner is headquartered
in Atlanta, Georgia and certain of its subsidiaries and affiliates
own and/or operate approximately 275 skilled nursing and assisted
living facilities as well as 12 long-term acute care hospitals
representing approximately 33,000 beds across the country. Certain
statements in this press release may constitute "forward-looking"
statements as defined in Section 27A of the Securities Act of 1933
(the "Securities Act"), Section 21E of the Securities Exchange Act
of 1934 (the "Exchange Act"), the Private Securities Litigation
Reform Act of 1995 (the "PSLRA"), or in releases made by the
Securities and Exchange Commission, all as may be amended from time
to time. Statements contained in this press release that are not
historical facts may be forward-looking statements within the
meaning of the PSLRA. Any such forward-looking statements reflect
our beliefs and assumptions and are based on information currently
available to us. Forward-looking statements are only predictions
and involve known and unknown risks, uncertainties and other
factors that may cause our actual results, performance or
achievements, or industry results, to be materially different from
any future results, performance or achievements expressed or
implied by such forward-looking statements. These cautionary
statements are being made pursuant to the Securities Act, the
Exchange Act and the PSLRA with the intention of obtaining the
benefits of the "safe harbor" provisions of such laws. Mariner
cautions investors that any forward-looking statements we make are
not guarantees or indicative of future performance. For additional
information regarding factors that may cause our results of
operations to differ materially from those presented herein, please
see "Risk Factors" contained in our Annual Report on Form 10-K for
the fiscal year ended December 31, 2002. You can identify
forward-looking statements as those that are not historical in
nature, particularly those that use terminology such as "may,"
"will," "should," "expect," "anticipate," "contemplate,"
"estimate," "believe," "plan," "project," "predict," "potential" or
"continue," or the negative of these, or similar terms. Any
subsequent written or oral forward-looking statements attributable
to us or persons acting on our behalf are expressly qualified in
their entirety by the cautionary statements set forth or referred
to above, as well as the risk factors contained in our Annual
Report for the year ended December 31, 2002 on Form 10-K. Except as
required by law, we disclaim any obligation to update such
statements or to publicly announce the result of any revisions to
any of the forward-looking statements contained herein to reflect
future events or developments. Contact: Mariner Health Care, Inc.
Boyd Gentry Senior Vice President and Treasurer 678-443-6872
DATASOURCE: Mariner Health Care, Inc. CONTACT: Boyd Gentry, Senior
Vice President and Treasurer of Mariner Health Care, Inc.,
+1-678-443-6872 Web site: http://www.marinerhealth.com/
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