Genesis HealthCare, a provider of post-acute care, completed the refinancing of its term loan facility and entered into a series of amendments to its significant loan and lease agreements. The company also closed an agreement in principle on terms of a settlement with the Department of Justice and an extension of the lock-up for a majority of the shares of the company’s common stock.

On July 29, 2016, Genesis entered into a new four-year term loan agreement with HCRI Tucson Properties (an affiliate of Welltower)/OHI Mezz Lender (an affiliate of Omega Healthcare Investors), and Welltower as the administrative agent and collateral agent. The net proceeds of the new term loan, along with cash on hand, were used to repay in full the $156.5 million obligation, including a 2% prepayment penalty, under the prior term loan agreement with Barclays Bank as administrative agent and collateral agent.

Borrowings under the new term loan agreement bear interest at a rate equal to the LIBOR rate (subject to a LIBOR floor of 1.00%) or an ABR rate (subject to a floor of 2.0%), plus in each case a specified applicable margin. The initial applicable margin for LIBOR rate loans is 13.0% per annum and the initial applicable margin for ABR rate loans is 12.0% per annum. At the company’s election, with respect to either LIBOR or ABR rate loans, up to 2.0% of the interest may be paid either in cash or paid-in-kind. The new term loan contains no pre-payment penalty provision.