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ADCARE HEALTH SYSTEMS, INC FILES (8-K) Disclosing Entry into a Material Definitive Agreement

July 29, 2014



Item 1.01 Material Amendment of a Material Definitive Agreement.

On July 24, 2014, certain wholly-owned subsidiaries (the "PrivateBank Borrowers") of AdCare Health Systems, Inc. (the "Company") entered into a Fifth Modification Agreement (the "Modification") with The PrivateBank and Trust Company ("PrivateBank"), effective July 22, 2014, which modified that certain Loan Agreement, dated September 20, 2012, between the PrivateBank Borrowers and PrivateBank (as amended, the "PrivateBank Credit Facility"). The Modification, among other things: (i) increases the letter of credit amount available under the PrivateBank Credit Facility from $3,500,000 to $3,750,000; and (ii) amends certain financial terms under the PrivateBank Credit Facility regarding debt service and interest charges. Certain subsidiaries of the Company are also borrowers under: (a) a credit facility with PrivateBank used to fund the purchase price of the acquisition of the Glenview Health & Rehabilitation facility located in Georgia; (b) a credit facility with PrivateBank used to fund the purchase price of the acquisition of the Woodland Manor facility located in Ohio; (c) a credit facility with PrivateBank used to fund the purchase price of the acquisition of four skilled nursing facilities and an office facility located in Arkansas; and (d) a credit facility with PrivateBank used to fund the purchase price of the West Markham Sub Acute and Rehabilitation Center located in Arkansas. Item 2.03 Creation of a Direct Obligation or an Obligation Under an

Off-Balance Sheet Arrangement of a Registrant.



The information set forth in Item 1.01 of this Current Report on Form 8-K is incorporated herein by this reference. Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

99.1 Fifth Modification Agreement, dated as of July 22, 2014, by and among ADK Thomasville Operator, LLC, ADK Lumber City Operator, LLC, ADK LaGrange Operator, LLC, ADK Powder Springs Operator, LLC, ADK Thunderbolt Operator, LLC, Attalla Nursing ADK, LLC, Mountain Trace Nursing ADK, LLC, Mt. Kenn Nursing, LLC, Erin Nursing, LLC, CP Nursing, LLC Benton Nursing, LLC, Valley River Nursing, LLC, Park Heritage Nursing, LLC, Homestead Nursing, LLC, Woodland Manor Nursing, LLC, Mountain View Nursing, LLC, Little Rock HC&R Nursing, LLC, Glenvue H&R Nursing, LLC, Coosa Nursing ADK, LLC, QC Nursing, LLC, AdCare Health Systems, Inc., and The PrivateBank and Trust Company.

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Source: Edgar Glimpses


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