The contract from Formation Capital LLC of Alpharetta, GA and Longwing Real Estate Ventures LLC of New York calls for a purchase price of $73 million in cash and a promissory note for $13 million. The deal is scheduled to close Nov. 30, according to Mariner's prepared statement.
Florida-based Sovereign Healthcare Holdings LLC has agreed to lease the 19 properties from the Formation-Longwing joint venture and operate the facilities. The value of that contract was not disclosed.
Mariner plans to use the sale's proceeds to reduce its debt load of $156 million. The company emerged from Chapter 11 protection under the US Bankruptcy Code in May 2002.
The sale includes five Central Florida nursing homes. They are Mariner Health of Orange City; Mariner Health of Port Orange; Mariner Health of Tuscawilla; Mariner Health of MetroWest; and Mariner Health at Hunter's Creek.
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