Vencor Completes Merger with Hillhaven Corporation and Secures $1 Billion Credit Facility

Strategic Insights -

The merger of The Hillhaven Corporation with Vencor, Inc. has been completed, marking a significant milestone for Vencor. W. Bruce Lunsford, Chairman, Chief Executive Officer, and President of Vencor, announced the completion of the merger, which will result in Vencor having a total of approximately 73 million common shares outstanding on a fully diluted basis. As part of the agreement, Vencor has secured a senior credit facility totaling $1 billion, replacing the previous bank credit facilities of Vencor and Hillhaven. This credit facility will be used to liquidate and redeem certain liabilities and refinance certain long-term debt obligations.

Key Takeaways:

  • Vencor has completed its merger with The Hillhaven Corporation, resulting in approximately 73 million common shares outstanding on a fully diluted basis.
  • The merger agreement calls for Hillhaven stockholders to receive 0.935 of a share of Vencor common stock for each share owned of Hillhaven common stock.
  • Vencor has secured a senior credit facility totaling $1 billion, replacing the previous bank credit facilities of Vencor and Hillhaven.
  • The credit facility, led by Morgan Guaranty Trust Company, will be used to liquidate and redeem certain liabilities as well as to refinance certain long-term debt obligations.
  • Vencor operates in 41 states, encompassing 35 long-term acute care hospitals, 311 nursing centers, 55 retail and institutional pharmacy outlets, and 23 retirement housing communities.
  • The company is one of the largest providers of ancillary services to nursing homes and subacute providers, with over 1,800 contracts to provide respiratory, physical, occupational, and speech therapies.

Statistics:

  • Vencor will have a total of approximately 73 million common shares outstanding on a fully diluted basis as a result of the merger.
  • The $1 billion credit facility will be used to liquidate and redeem certain liabilities as well as to refinance certain long-term debt obligations.
  • Vencor operates in 41 states, providing services in long-term acute care hospitals, nursing centers, retail and institutional pharmacy outlets, and retirement housing communities.
  • The company has over 1,800 contracts to provide ancillary services to nursing homes and subacute providers.

Sources:

  • BUSINESS WIRE, "Vencor Completes Merger with Hillhaven Corporation and Secures $1 Billion Credit Facility", Sept. 28, 1995.