Attached files
file | filename |
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EX-99.8 - EX-99.8 - REHABCARE GROUP INC | d69880exv99w8.htm |
EX-99.9 - EX-99.9 - REHABCARE GROUP INC | d69880exv99w9.htm |
EX-99.1 - EX-99.1 - REHABCARE GROUP INC | d69880exv99w1.htm |
EX-99.6 - EX-99.6 - REHABCARE GROUP INC | d69880exv99w6.htm |
EX-99.4 - EX-99.4 - REHABCARE GROUP INC | d69880exv99w4.htm |
EX-99.2 - EX-99.2 - REHABCARE GROUP INC | d69880exv99w2.htm |
EX-99.3 - EX-99.3 - REHABCARE GROUP INC | d69880exv99w3.htm |
EX-99.5 - EX-99.5 - REHABCARE GROUP INC | d69880exv99w5.htm |
EX-99.7 - EX-99.7 - REHABCARE GROUP INC | d69880exv99w7.htm |
EX-99.10 - EX-99.10 - REHABCARE GROUP INC | d69880exv99w10.htm |
EX-99.11 - EX-99.11 - REHABCARE GROUP INC | d69880exv99w11.htm |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): November 3, 2009
REHABCARE GROUP, INC.
(Exact name of Company as specified in its charter)
Delaware | 1-14655 | 51-0265872 | ||
(State or other jurisdiction | (Commission File Number) | (I.R.S. Employer | ||
of incorporation) | Identification No.) |
7733 Forsyth Boulevard | ||
Suite 2300 | ||
St. Louis, Missouri | 63105 | |
(Address of principal executive offices) | (Zip Code) |
(800) 677-1238
(Companys telephone number, including area code)
Not applicable
(Former name or former address if changed since last report)
(Companys telephone number, including area code)
Not applicable
(Former name or former address if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the Company under any of the following provisions:
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 1.01 Entry into a Material Definitive Agreement.
On November 3, 2009, RehabCare Group, Inc. (the Company), RehabCare Group East, Inc.,
RehabCare Hospital Holdings, L.L.C. (Holdings), RehabCare Merger Sub Corporation, a newly formed
wholly-owned subsidiary of Holdings (Merger Sub), Triumph HealthCare Holdings, Inc. (Triumph)
and TA Associates, Inc., in its capacity as the securityholder representative, entered into an
Agreement and Plan of Merger (the Merger Agreement) whereby Merger Sub will merge with and into
Triumph (the Merger), with Triumph surviving as a wholly-owned subsidiary of Holdings. The
Company will pay Triumphs stockholders, warrant holders and option holders (collectively, the
Sellers) an aggregate purchase price of $570 million, less proceeds used to retire certain
Triumph indebtedness, and subject to certain closing adjustments as provided in the Merger
Agreement (the Merger Consideration). The parties intend that the Company will pay the full
amount of the Merger Consideration in cash, to be funded through (i) a senior debt financing, (ii)
an underwritten offering of common stock under its currently effective registration statement on
Form S-3 on file with the Securities and Exchange Commission and (iii) cash on hand. In the event
the Company is unable to pay the Merger Consideration entirely in cash, the Company will issue up
to $125 million of preferred stock of the Company to certain Triumph stockholders (the Backstop
Investors), pursuant to a Backstop Securities Agreement (the Backstop Securities Agreement),
dated as of November 3, 2009, between the Company and the Backstop Investors.
The completion of the Merger is subject to certain conditions, including, among others, (i)
the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as
amended, has expired or been terminated, (ii) the Company has received the senior debt financing
proceeds, (iii) subject to certain materiality exceptions, the representations and warranties made
by the Company and Triumph, respectively, are true and correct and (iv) the Company and Triumph are
in compliance in all material respects with their respective Merger Agreement obligations.
The Merger Agreement contains customary representations, warranties and covenants by the
parties. At the closing of the Merger, the Company will pay $25 million of the Merger
Consideration into two escrow accounts. The first escrow account, in the amount of $2.5 million,
will be used to satisfy any obligation of the Sellers to pay net working capital and other purchase
price adjustments. The second escrow account, in the amount of $22.5 million, will be the sole and
exclusive remedy available to the Company if Triumphs representations and warranties fail to be
true and correct (subject to certain materiality exceptions) at the signing or the closing of the
Merger, or if Triumph breaches any of its covenants or agreements pursuant to the Merger Agreement.
Any amounts remaining in the indemnity escrow account 16 months after closing, other than amounts
set aside for claims pending at such time, will be released to the Sellers. The Companys
indemnification claims are subject to a $2 million deductible.
If all of the conditions to the obligations of the Company have been satisfied or waived
(other than (i) the senior debt financing condition and (ii) the underwritten common stock offering
condition), and the Company has not consummated the Merger by December 31, 2009, then the Merger
Agreement may be terminated by Triumph, in which case the Company would be required to pay Triumph
a termination fee of $20 million in cash.
Pursuant to the terms of the Backstop Securities Agreement, if the Company issues its
preferred stock in connection with the Merger, the Company will be required to pay a 5% commitment
fee and a 5% support fee to the Backstop Investors. The Company would issue 10% Series A
Convertible Redeemable Preferred Stock (Series A Preferred Stock) until the Series A Preferred
Stock equals 19.99% of the Companys voting power on an as-converted basis. Beyond that threshold,
the Company would issue 11.5% Series B Non-Voting Redeemable Preferred Stock (Series B Preferred
Stock). The Series A Preferred Stock holders would have the right at any time to convert their
shares into the Companys common stock at a price per share of common stock equal to $20.00
(subject to adjustment for stock splits and stock dividends). The Company would be required to
redeem the Series A Preferred Stock and Series B Preferred Stock 180 days after the expiration of
the initial term of the senior debt financing that the Company obtained in connection with the
Merger. For so long as the holders of the Series A Preferred Stock and Series B Preferred Stock
hold at least 15% of the Companys voting power on an as-converted basis, they will have the right
to appoint two members to the Companys board of directors, and for so long as such holders hold at
least 5% of the Companys voting power on an as-converted basis, they will have the right to
appoint one member to the Companys board of directors. The Series A Preferred Stock holders would
also have certain approval rights, including, but not limited to, approval of: (i) the Companys
payment of a cash dividend on its
common stock; (ii) the Companys entering into a change of control transaction (unless the
Company redeems the Series A Preferred Stock and the
Series B Preferred Stock prior to or in connection with the
consummation of such transaction); (iii) the Companys issuance of equity securities (subject to
certain exceptions); (iv) the Companys acquisition of assets for a purchase price in excess of
$100 million; and (v) the Companys incurrence of more than $25 million in new indebtedness unless the proceeds thereof are used to redeem the Series A Preferred Stock and
Series B Preferred Stock.
The foregoing description of the Merger Agreement and the Backstop Securities Agreement, and
the transactions contemplated thereby, is not complete and is subject to and qualified in its
entirety by reference to such agreements, copies of which are attached as exhibits hereto and the
terms of which are incorporated herein by reference.
The Merger Agreement and Backstop Securities Agreement have been included to provide investors
and security holders with information regarding its terms. The agreements are not intended to
provide any other financial information about the Company, Triumph or their respective subsidiaries
and affiliates. The representations, warranties and covenants contained in the agreements were
made only for purposes of those agreements and as of specific dates; were solely for the benefit of
the parties to the agreements; may be subject to limitations agreed upon by the parties, including
being qualified by confidential disclosures made for the purposes of allocating contractual risk
between the parties thereto instead of establishing these matters as facts; and may be subject to
standards of materiality applicable to the contracting parties that differ from those applicable to
investors. Investors should not rely on the representations, warranties and covenants or any
description thereof as characterizations of the actual state of facts or condition of the parties
or any of their respective subsidiaries or affiliates. Moreover, information concerning the
subject matter of the representations, warranties and covenants may change after the date of the
agreements, which subsequent information may or may not be fully reflected in public disclosures by
the Company.
Item 8.01 Other Events.
Financing Commitments
On November 3, 2009, the Company received commitments from Bank of America, N.A., Royal Bank
of Canada and BNP Paribas for approximately $625 million in senior debt financing, subject to,
among other things, entering into definitive credit documentation contemporaneously with the
closing of the Merger.
Item 9.01 Financial Statements and Exhibits.
Exhibits See Exhibit Index
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the company has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: November 3, 2009
REHABCARE GROUP, INC. | ||||
By: /s/ Jay W. Shreiner | ||||
Name: Jay W. Shreiner | ||||
Title: Executive Vice President and | ||||
Chief Financial Officer |
EXHIBIT INDEX
Exhibit No. | Description | |
99.1
|
Joint News Release of the Company and Triumph | |
99.2
|
Agreement and Plan of Merger, dated November 3, 2009, between the Company, RehabCare Group East, Inc., RehabCare Hospital Holdings, L.L.C., RehabCare Merger Sub Corporation, Triumph and TA Associates, Inc. | |
99.3
|
Form of Certificate of Incorporation | |
99.4
|
Form of Letter of Transmittal | |
99.5
|
Form of Escrow Agreement | |
99.6
|
Form of Opinion | |
99.7
|
Form of Letter of Resignation | |
99.8
|
Form of Option Surrender Agreement | |
99.9
|
Form of Warrant Surrender Agreement | |
99.10
|
Backstop Securities Agreement, between the Company and certain investors named therein, including the exhibits listed therein | |
99.11
|
Registration Rights Agreement, between the Company and certain investors named therein |