Kennett Square-based Genesis HealthCare has secured new financing, including an agreement for an amended and expanded term loan, writes John George for the Philadelphia Business Journal.

The company has also secured a commitment for a new asset-based lending facility of $555 million and negotiated annual lease reductions of $54 million, effective retroactively from Jan. 1.

The debt restructuring comes shortly after Genesis warned that unless it was able to secure help from its creditors, if was facing possible bankruptcy.

“The commitments we have received from new and existing credit partners signal strength and confidence in Genesis’ business plan, and positions the company for sustainable, long-term success,” said CEO George V. Hager. “I could not be more pleased with the progress.”

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The $555 million asset-based lending facility from MidCap Financial Trust extends the maturity of its current credit facility by three years to 2023. Additionally, Genesis was able to secure a $40 million addition to its $124 million term loan.

To satisfy its other debt obligations, Genesis said that it is continuing to “make progress on a number of refinancing and asset sale transactions.”

Read more about the new financing in the Philadelphia Business Journal here, and check out previous VISTA Today coverage of Genesis HealthCare here.

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