Sun Healthcare Group, Irvine, Calif., said it completed its previously announced acquisition of Harborside Healthcare Corp., Boston, for about $349 million in cash.
Last October, the operator of long-term-care facilities said it would buy privately held Harborside from Investcorp, a New York-based global investment manager, and refinance or assume Harborsides net debt of about $275 million.
In the deal, Sun Healthcare will pick up Harborsides 73 skilled-nursing facilities, one assisted-living facility and one independent-living facility in 10 states. Sun Healthcare also said it entered into a $485 million new senior secured credit facilityessentially a line of creditin connection with the acquisition. Proceeds from the secured credit facility, in addition to cash and proceeds from Suns issuance of $200 million of senior subordinated notes, were used to pay for Harborside, refinance certain portions of the debt and replace Suns revolving credit facility.
For the year ended Dec. 31, 2006, Sun Healthcare reported total net revenue of about $1 billion, compared with about $765.7 million in 2005. Sun Healthcares inpatient services subsidiaries, including SunBridge Healthcare Corp., collectively operate 141 skilled-nursing, long-term-care, assisted-living and mental-health facilities in 19 states. Other Sun affiliates provide rehabilitation therapy, medical staffing and other services, according to the companys Web site. -- by Jessica Zigmond