IRVINE, Calif., Sept. 23, 2015 (GLOBE NEWSWIRE) -- Sabra Health Care REIT, Inc. (Nasdaq:SBRA), (Nasdaq:SBRAP) provided an update today regarding the tenant of the Forest Park Medical Center-Frisco hospital ("Frisco").
On August 17, 2015, Sabra served Frisco with a notice of pending event of default under its lease as a result of Frisco's non-payment of rent. Due to Frisco's failure to obtain the required financing under the amended memorandum of understanding (the "MOU") between Sabra and Frisco described in Sabra's Quarterly Report on Form 10-Q for the quarter ended June 30, 2015, the MOU did not become effective and has been withdrawn. On September 22, 2015, Frisco filed a petition for relief under Chapter 11 of the United States Bankruptcy Code in the Eastern District of Texas. Frisco has retained a firm to market the hospital assets for sale which may or may not include Sabra's investment in the hospital real estate. Any sale of the hospital real estate or any new lease in favor of a buyer would require Sabra's consent and approval.
Commenting on these developments, Rick Matros, CEO and Chairman, said, "We are working with Frisco on a cooperative bankruptcy that we expect will result in either an outright sale of the hospital real estate or our continuing ownership subject to a lease with a viable operating company. Having previously gone through reorganizations as the CEO of two publicly held operating companies, I believe this is the most advantageous approach to finding the best long-term solution for the hospital."
ABOUT SABRA
Sabra Health Care REIT, Inc. is a Maryland corporation and operates as a self-administered, self-managed real estate investment trust (a "REIT") that, through its subsidiaries, owns and invests in real estate serving the healthcare industry. Sabra leases properties to tenants and operators throughout the United States and Canada.
FORWARD-LOOKING STATEMENTS SAFE HARBOR
This release contains "forward-looking" statements as defined in the Private Securities Litigation Reform Act of 1995. These statements may be identified, without limitation, by the use of "expects," "believes," "intends," "should" or comparable terms or the negative thereof. Forward-looking statements in this release include all statements regarding our expectations concerning the bankruptcy process for Frisco, the ultimate outcome of the Frisco bankruptcy and our pursuit of alternative solutions for our Frisco investment.
Our actual results may differ materially from those projected or contemplated by our forward-looking statements as a result of various factors, including, among others, the following: our dependence on Genesis Healthcare, Inc. and certain wholly owned subsidiaries of Holiday AL Holdings LP until we are able to further diversify our portfolio; our dependence on the operating success of our tenants; the dependence of our tenants on reimbursement from governmental and other third-party payors; the significant amount of and our ability to service our indebtedness; covenants in our debt agreements that may restrict our ability to make investments, incur additional indebtedness and refinance indebtedness on favorable terms; increases in market interest rates; changes in foreign currency exchange rates; our ability to raise capital through equity and debt financings; the relatively illiquid nature of real estate investments; competitive conditions in our industry; the loss of key management personnel or other employees; the impact of litigation and rising insurance costs on the business of our tenants; uninsured or underinsured losses affecting our properties and the possibility of environmental compliance costs and liabilities; our ability to maintain our status as a REIT; compliance with REIT requirements and certain tax matters related to our status as a REIT; and other factors discussed from time to time in our news releases, public statements and/or filings with the Securities and Exchange Commission (the "SEC"), especially the "Risk Factors" sections of our Annual and Quarterly Reports on Forms 10-K and 10-Q. Forward-looking statements made in this press release are not guarantees of future performance, events or results, and you should not place undue reliance on these forward-looking statements, which speak only as of the date hereof. We assume no, and hereby disclaim any, obligation to update any of the foregoing or any other forward-looking statements as a result of new information or new or future developments, except as otherwise required by law.