SunLink Health Systems completed the sale of nearly all assets, and the leasehold interest of Dexter Hospital, LLC, to Southeast Health Center of Stoddard County, LLC. Southeast Health Center of Stoddard County is an indirect subsidiary of Southeast Missouri Hospital Association (D/B/A SoutheastHEALTH). The assets included a leased 50-bed acute care hospital and related clinics, equipment, and home health services in Dexter, MO.
The sale of the assets and leasehold interest was for approximately $9.8 million, less estimated sale expenses and taxes. It is expected to result in net proceeds of approximately $7.4 million and an after tax gain of approximately $4.9 million or $0.51 per share. During the transition period, Dexter Hospital will manage the hospital and related businesses for Southeast Health Center of Stoddard County. Dexter Hospital retained accounts receivable and certain other assets and substantially all liabilities of the hospital. Approximately $5.2 million of the estimated net proceeds was used to pay off the outstanding balance of the company's senior credit facility with Chatham Credit Management III and the remaining amount will be used for other corporate purposes.
Robert M. Thornton, Jr., chairman and chief executive officer of SunLink, commented, "We operated our Missouri Southern hospital under a lease which expires in 2019. The landlord previously notified us that our lease would not be renewed and that they had entered into a lease with SoutheastHEALTH effective upon the termination of our lease. We are pleased that we have been able to reach a collaborative agreement for SoutheastHEALTH's subsidiary to acquire the assets and leasehold interest of Missouri Southern and for our subsidiary to manage the facility for the purchaser during a transition period ending June 30, 2013."
Approximately $5.2 million of the estimated net proceeds was used to pay off the outstanding balance of the company's senior credit facility with Chatham Credit Management III, and the remaining amount will be used for other corporate purposes.
SunLink Health Systems' subsidiaries currently operate four community hospitals, excluding Dexter Hospital, and related businesses in the Southeast and Midwest. The company also operates a specialty pharmacy company in Louisiana. Each hospital is the only hospital in its community and each facility's operating strategy is to link patients' needs with dedicated physicians and health professionals to deliver quality, efficient medical care in the community it serves.
For additional information on SunLink Health Systems, please visit sunlinkhealth.com
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