Regional Health Properties and SunLink Health Systems Announce Merger Agreement

Regional Health Properties, Inc. and SunLink Health Systems, Inc. have revealed a joint press release stating the signing of an Agreement and Plan of Merger on January 3, 2025. The merger involves SunLink merging with and into Regional, with Regional continuing as the surviving entity. The announcement highlighted the terms and conditions of the merger agreement, aimed at creating a combined company with a strengthened balance sheet and increased scale.

The merger agreement is anticipated to enhance opportunities for boosting shareholder value and fortifying the balance sheet. The combined entity is expected to benefit from the complementary assets of both companies, positioning them well for future growth. Key executives from both Regional and SunLink expressed optimism about the merger and the potential for increased shareholder value.

As part of the merger agreement, each five SunLink common shares will result in the issuance of one share of Regional common stock and one share of Regional’s newly-authorized Series D 8% Cumulative Convertible Redeemable Preferred Stock. The completion of the merger is subject to approvals from the shareholders of both companies, regulatory clearances, and meeting customary closing conditions.

The transaction is estimated to close in the spring of 2025, following the necessary approvals. The merger creates a new board of directors that includes industry veterans C. Christian Winkle and Scott Kellman. The merger also features financial advice from Harpeth Capital, LLC and legal advisory services from Troutman Pepper Locke LLP and Smith, Gambrell & Russell, LLP.

The joint press release emphasized that communications regarding the merger should not be considered as an offer to sell securities or a solicitation for proxy votes. The companies plan to file a Registration Statement on Form S-4 with the SEC, detailing the proposed merger. Investors are encouraged to review the filing for comprehensive information related to the transaction.

The united company will be based in Atlanta, Georgia, and will be led by a seasoned management team after the transaction. The executives are confident in the growth prospects and the value creation potential that the merger is expected to bring. While forward-looking statements have been made, the companies have emphasized the uncertainty and risks involved, without any commitment to update future statements.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Regional Health Properties’s 8K filing here.

Regional Health Properties Company Profile

Regional Health Properties, Inc, through its subsidiaries, operates as a self-managed real estate investment company that invests primarily in real estate purposed for long-term care and senior living. Its business principally consists of leasing and subleasing such facilities to third-party tenants, which operate the facilities.