Quality Care seeks funding to buy No. 2 U.S. nursing home chain | Reuters

By Tracy Rucinski

NASHVILLE, Tenn. Quality Care Properties Inc (QCP.N), one of the largest U.S. healthcare landlords, said on Thursday it is meeting with lenders to discuss up to $500 million in funding to acquire its main tenant, No. 2 U.S. nursing home chain HCR ManorCare.

HCR, which accounts for nearly all of Quality Care’s revenues, failed to make a full rent payment in June. It owes about $300 million in past rent, the landlord said in a regulatory filing.

Quality Care said it is asking lenders for a term loan of up to $400 million and a $100 million letter of credit to refinance current debt and provide working capital. The company said it hoped to have a commitment by June 15.

Moody’s downgraded Quality Care on Tuesday and put the rating on review given uncertainty surrounding its ability to reach an out-of-court restructuring deal…

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