UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 1)*
Genesis Healthcare, Inc.
(formerly known as Skilled Healthcare Group, Inc.)
(Name of Issuer)
Class A Common Stock, par value $0.001 per share
(Title of Class of Securities)
37185X 106
(CUSIP Number)
Andrea Daly, Esq.
c/o Onex Corporation
161 Bay Street
P.O. Box 700
Toronto, Ontario M5J 2S1
(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)
February 2, 2015
(Date of Event Which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e), 240.13d-1(f), or 240.13d-1(g), check the following box. ¨
Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule 13d-7 for other parties to whom copies are to be sent.
* | The remainder of this cover page shall be filled out for a reporting persons initial filing on this form with respect to the subject class of securities and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page. |
The information required on the remainder of this cover page shall not be deemed to be filed for the purpose of Section 18 of the Securities Exchange Act of 1934 (Act) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).
(Continued on following pages)
CUSIP No. 37185X 106 | SCHEDULE 13D
|
1 | NAMES OF REPORTING PERSONS:
Onex Corporation | |||||
2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) x (b) ¨ | |||||
3 | SEC USE ONLY
| |||||
4 | SOURCE OF FUNDS
OO | |||||
5 | CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
¨ | |||||
6 | CITIZENSHIP OR PLACE OF ORGANIZATION
Ontario, Canada | |||||
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
|
7 | SOLE VOTING POWER
0 | ||||
8 | SHARED VOTING POWER
14,750,623 shares of Class A Common Stock (the Class A Common Stock) issuable on conversion of Class B Common Stock of the Issuer (the Class B Common Stock). | |||||
9 | SOLE DISPOSITIVE POWER
0 | |||||
10 | SHARED DISPOSITIVE POWER
14,750,623 shares of Class A Common Stock issuable on conversion of Class B Common Stock. | |||||
11 |
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
14,750,623 shares of Class A Common Stock issuable on conversion of Class B Common Stock. | |||||
12 | CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
¨ | |||||
13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
17.2% of the Issuers shares of Class A Common Stock, assuming exchange of only the Reporting Persons Class B Common Stock into Class A Common Stock (assuming 71,100,511 shares of Class A Common Stock outstanding on February 6, 2015). | |||||
14 | TYPE OF REPORTING PERSON
CO |
2
CUSIP No. 37185X 106 | SCHEDULE 13D
|
1 | NAMES OF REPORTING PERSONS:
Onex Partners LP | |||||
2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) x (b) ¨ | |||||
3 | SEC USE ONLY
| |||||
4 | SOURCE OF FUNDS
OO | |||||
5 | CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
¨ | |||||
6 | CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware | |||||
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
|
7 | SOLE VOTING POWER
0 | ||||
8 | SHARED VOTING POWER
11,293,552 shares of Class A Common Stock issuable on conversion of Class B Common Stock. | |||||
9 | SOLE DISPOSITIVE POWER
0 | |||||
10 | SHARED DISPOSITIVE POWER
11,293,552 shares of Class A Common Stock issuable on conversion of Class B Common Stock. | |||||
11 |
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11,293,552 shares of Class A Common Stock issuable on conversion of Class B Common Stock. | |||||
12 | CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
¨ | |||||
13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13.2% of the Issuers shares of Class A Common Stock, assuming exchange of only the Reporting Persons Class B Common Stock into Class A Common Stock (assuming 71,100,511 shares of Class A Common Stock outstanding on February 6, 2015). | |||||
14 | TYPE OF REPORTING PERSON
PN |
3
CUSIP No. 37185X 106 | SCHEDULE 13D
|
1 | NAMES OF REPORTING PERSONS:
Onex US Principals LP | |||||
2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) x (b) ¨ | |||||
3 | SEC USE ONLY
| |||||
4 | SOURCE OF FUNDS
OO | |||||
5 | CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
¨ | |||||
6 | CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware | |||||
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
|
7 | SOLE VOTING POWER
0 | ||||
8 | SHARED VOTING POWER
68,820 shares of Class A Common Stock issuable on conversion of Class B Common Stock. | |||||
9 | SOLE DISPOSITIVE POWER
0 | |||||
10 | SHARED DISPOSITIVE POWER
68,820 shares of Class A Common Stock issuable on conversion of Class B Common Stock. | |||||
11 |
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
68,820 shares of Class A Common Stock issuable on conversion of Class B Common Stock. | |||||
12 | CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
¨ | |||||
13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.1% of the Issuers shares of Class A Common Stock, assuming exchange of only the Reporting Persons Class B Common Stock into Class A Common Stock (assuming 71,100,511 shares of Class A Common Stock outstanding on February 6, 2015). | |||||
14 | TYPE OF REPORTING PERSON
PN |
4
CUSIP No. 37185X 106
|
SCHEDULE 13D
|
1 | NAMES OF REPORTING PERSONS:
Onex Real Estate Holdings III Inc. | |||||
2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) x (b) ¨ | |||||
3 | SEC USE ONLY
| |||||
4 | SOURCE OF FUNDS
OO | |||||
5 | CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
¨ | |||||
6 | CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware | |||||
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
|
7 | SOLE VOTING POWER
0 | ||||
8 | SHARED VOTING POWER
3,388,251 shares of Class A Common Stock issuable on conversion of Class B Common Stock. | |||||
9 | SOLE DISPOSITIVE POWER
0 | |||||
10 | SHARED DISPOSITIVE POWER
3,388,251 shares of Class A Common Stock issuable on conversion of Class B Common Stock. | |||||
11 |
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,388,251 shares of Class A Common Stock issuable on conversion of Class B Common Stock. | |||||
12 | CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
¨ | |||||
13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.9% of the Issuers shares of Class A Common Stock, assuming exchange of only the Reporting Persons Class B Common Stock into Class A Common Stock (assuming 71,100,511 shares of Class A Common Stock outstanding on February 6, 2015). | |||||
14 | TYPE OF REPORTING PERSON
CO |
5
CUSIP No. 37185X 106
|
SCHEDULE 13D
|
1 | NAMES OF REPORTING PERSONS:
Gerald W. Schwartz | |||||
2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) x (b) ¨ | |||||
3 | SEC USE ONLY
| |||||
4 | SOURCE OF FUNDS
OO | |||||
5 | CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
¨ | |||||
6 | CITIZENSHIP OR PLACE OF ORGANIZATION
Canada | |||||
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
|
7 | SOLE VOTING POWER
0 | ||||
8 | SHARED VOTING POWER
14,750,623 shares of Class A Common Stock issuable on conversion of Class B Common Stock. | |||||
9 | SOLE DISPOSITIVE POWER
0 | |||||
10 | SHARED DISPOSITIVE POWER
14,750,623 shares of Class A Common Stock issuable on conversion of Class B Common Stock. | |||||
11 |
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
14,750,623 shares of Class A Common Stock issuable on conversion of Class B Common Stock. | |||||
12 | CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
¨ | |||||
13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
17.2% of the Issuers shares of Class A Common Stock, assuming exchange of only the Reporting Persons Class B Common Stock into Class A Common Stock (assuming 71,100,511 shares of Class A Common Stock outstanding on February 6, 2015). | |||||
14 | TYPE OF REPORTING PERSON
IN |
6
This Schedule 13D (the Amendment) amends the Schedule 13D dated September 13, 2012, filed by Onex Corporation, Onex Partners LP, Onex US Principals LP, Onex Real Estate Holdings III Inc., Onex Skilled Holdings II Limited and Gerald W. Schwartz with respect to beneficial ownership of shares of Skilled Healthcare Group, Inc. (now known as Genesis Healthcare, Inc.) (the Original Schedule 13D).
Except as specifically provided herein, this Amendment does not modify any of the information previously reported on the Original Schedule 13D.
Item 1. Security and Issuer.
Item 1 of the Original Schedule 13D is hereby amended and restated as follows:
This Statement on Schedule 13D (this Statement) is being filed on behalf of the Reporting Persons (as defined in Item 2(a) below) with respect to the shares of the Class A common stock (the Class A Common Stock), issuable on conversion of Class B common stock (Class B Common Stock) of Genesis Healthcare, Inc., a Delaware corporation formerly known as Skilled Healthcare Group, Inc. (the Issuer or the Company). The Companys principal executive offices are located at 101 East State Street, Kennett Square, PA 19348. The Reporting Persons may be deemed to be a group for the purposes of Section 13 of the Securities and Exchange Act of 1934, as amended, with each of such Reporting Persons being deemed to have beneficial ownership of all of the shares owned by the group.
Item 2. Identity and Background.
Item 2 of the Original Schedule 13D is hereby amended and restated as follows:
This Statement is being filed by the following persons (each a Reporting Person and, collectively, the Reporting Persons): (i) Onex Corporation, an Ontario, Canada corporation (Onex); (ii) Onex Partners LP, a Delaware limited partnership (OPLP); (iii) Onex US Principals LP, a Delaware limited partnership (USLP); (iv) Onex Real Estate Holdings III Inc., a Delaware corporation (OREH); and (v) Gerald W. Schwartz. The agreement among the Reporting Persons relating to the joint filing of this Statement is attached as Exhibit 1 hereto.
Onexs principal business is to act as a diversified company that operates through autonomous subsidiaries, associated companies and strategic partnerships. Information relating to the directors and executive officers of Onex is set forth on Schedule A hereto which is incorporated herein by reference. Onex controls, directly or indirectly, each of OPLP, Onex Partners GP LP, Onex Partners GP Inc., USLP, Onex American Holdings GP LLC, and OREH. The address of the principal business and principal offices of Onex is 161 Bay Street, P.O. Box 700, Toronto, Ontario, Canada M5J 2S1.
OPLPs principal business is investing in securities. The address of the principal business and principal offices of OPLP is 712 Fifth Avenue, New York, NY 10019. The general partner of OPLP is Onex Partners GP LP.
Onex Partners GP LP is a Delaware limited partnership. Onex Partners GP LPs principal business is being the general partner of OPLP. The address of the principal business and principal offices of Partners GP LP is c/o Onex Investment Corp., 712 Fifth Avenue, New York, NY 10019. The general partner of Onex Partners GP LP is Onex Partners GP Inc.
Onex Partners GP Inc. is a Delaware corporation. Onex Partners GP Inc.s principal business is being the general partner of Onex Partners GP LP. The address of the principal business and principal offices of Onex Partners GP Inc. is c/o Onex Investment Corp., 712 Fifth Avenue, New York, NY 10019. Information relating to the directors and executive officers of Onex Partners GP Inc. is set forth on Schedule B hereto which is incorporated herein by reference.
USLPs principal business is investing in securities. The address of the principal business and principal offices of USLP is 421 Leader Street, Marion, Ohio 43302. The general partner of USLP is Onex American Holdings GP LLC.
Onex American Holdings GP LLC is a Delaware limited liability company. Onex American Holdings GP LLCs principal business is being the general partner of USLP. The address of the principal business and principal offices of Onex American Holdings GP LLC is 421 Leader Street, Marion, Ohio 43302.
OREHs principal business is a holding company that owns indirect interests in a variety of Onexs investments. The address of the principal business and principal offices of OREH is 421 Leader Street, Marion, Ohio 43302. Information relating to the directors and executive officers of OREH is set forth on Schedule C hereto which is incorporated herein by reference.
Mr. Schwartzs business address is c/o Onex Corporation, 161 Bay Street, P.O. Box 700, Toronto, Ontario, Canada M5J 2S1. His present principal occupation is Chairman of the Board, President and Chief Executive Officer of Onex Corporation. Mr. Schwartz is a citizen of Canada. Mr. Schwartz is the indirect holder of all of the issued and outstanding shares of Multiple Voting Shares and 17.6% of the issued and outstanding Subordinate Voting Shares of Onex, ownership of which entitles Mr. Schwartz to elect a majority of the members of Onexs Board of Directors.
During the past five years, none of the Reporting Persons or other persons identified in this Item 2 (i) has been convicted in any criminal proceeding (excluding traffic violations or similar misdemeanors) or (ii) was a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws.
7
Item 3. Source and Amount of Funds or Other Consideration
The Original Schedule 13D is hereby supplemented and amended by the information below:
No purchase of securities of the Issuer by any Reporting Person was involved in the transaction which necessitated the filing of this Amendment to the Original Schedule 13D.
Item 4. Purpose of the Transaction.
Item 4 of the Original Schedule 13D is hereby supplemented and amended as follows:
Purchase and Contribution Agreement
On August 18, 2014, the Company entered into a Purchase and Contribution Agreement (the Original Purchase Agreement) with FC-GEN Operations Investment, LLC, a Delaware limited liability company (Genesis), pursuant to which the businesses and operations of the Company and Genesis would be combined (the Combination) and the common stock, par value $0.001 per share, of the Company (the Company Common Stock) and options to purchase shares of Company Common Stock, which remained outstanding, would represent 25.75% of the equity of the combined entity and the holders of equity interests of Genesis, together with Health Care REIT, Inc., a Delaware corporation, and the participants under Genesis management incentive compensation plan would hold 74.25% of the equity of the combined entity, calculated on an as-exchanged and as-converted basis as set forth in the Original Purchase Agreement. On January 5, 2015, the Company and Genesis entered into Amendment No. 1 (Amendment No. 1) to the Original Purchase Agreement (the Original Purchase Agreement, as amended, the Purchase Agreement). The Purchase Agreement does not provide for the acquisition of any securities of the Issuer by the Reporting Persons.
On August 18, 2014, following execution and delivery of the Original Purchase Agreement by the parties thereto, OREH, OPLP and USLP, which on such date owned shares of Company Common Stock representing approximately 82% of the voting power of the outstanding shares of Company Common Stock, delivered an irrevocable written consent to the Company approving in all respects the Original Purchase Agreement and the transactions and agreements contemplated thereby, including the Combination. On January 5, 2015, following execution and delivery of Amendment No. 1 by the parties thereto, OREH, OPLP and USLP delivered an irrevocable written consent to the Company approving such amendment.
On February 2, 2015, the Company closed the transactions (the Transactions) contemplated by Purchase Agreement (the Closing). As a result of the Closing, the number of outstanding shares of the Company has increased, causing the percentage of each Reporting Persons beneficial ownership to decrease.
On February 3, 2015, the New York Stock Exchange ticker symbol for the Class A Common Stock changed to GEN.
In connection with the Transactions, the Companys board of directors approved a restated certificate of incorporation (the Restated Charter) and restated bylaws (the Restated Bylaws), which became effective upon the consummation of the Transactions. The Restated Charter changed the name of the Company to Genesis Healthcare, Inc. and changed the shares of capital stock that the Company is authorized to issue. Specifically, the Company now has the authority to issue a total of 1,200,000,000 shares of capital stock, consisting of the following classes of capital stock: (1) 1,000,000,000 shares of Class A Common Stock; (2) 20,000,000 shares of Class B Common Stock; (3) 150,000,000 shares of Class C common stock, par value $0.001 per share (the Class C Common Stock); and (4) 30,000,000 shares of preferred stock, par value $0.001 per share. Each holder of Class A Common Stock, Class B Common Stock and Class C Common Stock is entitled to one vote for each share of such Company Common Stock, held of record by such holder. This represents a change from the former charter of the Company, which provided that each holder of Class B Common Stock was entitled to 10 votes per share.
Furthermore, the affirmative vote of the holders of at least 66 2/3% of the combined voting power of the shares entitled to vote in connection with the election of directors of the Company is required to amend, alter, change, or repeal, or to adopt any provision inconsistent with the purpose and intent of certain articles of the Restated Charter relating to:
| the management of the business and conduct of the affairs of the Company; |
| the rights to call special meetings of the stockholders of the Company; |
| the ability to take action by written consent in lieu of a meeting of stockholders; |
| the obligations of the Company to indemnify its directors and officers; |
| amendments to the bylaws of the Company; and |
| amendments to the Restated Charter. |
The Restated Bylaws provide that the Companys board of directors consists of not less than three nor more than 19 members, divided into three classes, designated Class I, Class II and Class III. Directors in each class serve for a term of three years. The Restated Bylaws may be amended, altered, changed or repealed, in whole or in part, or new bylaws may be adopted by either (1) the affirmative vote of a majority of the entire board of directors or (2) the affirmative vote of the holders of a majority of the voting power of the shares of capital stock of the Company entitled to vote in connection with the election of directors of the Company.
8
The Purchase Agreement provided that Genesis and the Company would each take all actions necessary so that, at the Closing, the Board of Directors would consist of two individuals designated by the Company, four individuals designated by Genesis and five individuals designated jointly by the Company and Genesis. On February 2, 2014, immediately prior to the Closing, Messrs. Robert Le Blanc, Michael Boxer, M. Bernard Puckett and Bruce Yarwood and Linda Rosenstock, M.D. resigned from the Companys Board of Directors, and the remaining directors (Messrs. Glenn Schafer and Robert Fish) set the number of members of the Board of Directors at eleven and appointed the following individuals to fill the board vacancies: Messrs. Jim Bloem, John DePodesta, Steven Fishman, George Hager, Arnold Whitman, Robert Hartman, Joshua Hausman, Jim McKeon and David Reis. Mr. Hausman is a Managing Director of Onex.
The foregoing descriptions of the Purchase Agreement, Restated Charter and Restated Bylaws do not purport to be complete and is qualified in its entirety by references to the Purchase Agreement, Restated Charter and Restated Bylaws, copies of which are filed as Exhibits 2, 3, and 4 to this Statement and are incorporated herein by reference.
In connection with the Transactions, the following agreements were entered into by OREH, OPLP and USLP:
Registration Rights Agreement
OREH, OPLP and USLP entered into an Amended and Restated Registration Rights Agreement, dated as of August 18, 2014, by and among the Company, certain holders of the Class B Common Stock listed on Schedule A attached thereto (the Onex Holders) and certain holders of equity securities of Genesis listed on Schedule B attached thereto (collectively, the Genesis Holders and, together with the Onex Holders, the Investors; the Investors, together with their respective permitted transferees, the Holders), which became effective as of the Closing.
Lock-up Agreements
Pursuant to the Registration Rights Agreement, each Holder of Registrable Securities (as defined below) has agreed that, except for transfers to permitted transferees and transfers in connection with registration statements filed by the Company, it shall not, during the period commencing on the date of Closing until the Lock-up Expiration (as defined below), (1) offer, pledge (other than to a financial institution in exchange for borrowed money), sell, contract to sell, grant any option or contract to purchase, purchase any option or contract to sell, hedge the beneficial ownership of or otherwise dispose of, directly or indirectly, any Registrable Securities, or (2) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of such securities, whether any such transaction described in (1) or (2) above is to be settled by delivery of Registrable Securities or such other securities, in cash or otherwise.
Under the Registration Rights Agreement:
| Registrable Securities are defined to include: (1) any shares of Class A Common Stock held by the Onex Holders and any shares of Class A Common Stock issuable upon conversion of the Class B Common Stock held by the Onex Holders, (2) any shares of Class A Common Stock issued in connection with the consummation of the Transactions (Stock Consideration) or issuable upon the exercise of securities issued as Stock Consideration, (3) all shares of Class A Common Stock issued or issuable upon exchange of the Class A common units of Genesis (the Genesis Class A Units) and (4) any Class A Common Stock issued as (or issuable upon the conversion or exercise of any right or other security which is issued as) a stock dividend, stock split or other distribution with respect to, or in exchange for or in substitution of such shares of Class A Common Stock referred to in clauses (1), (2) or (3) or in connection with a combination of shares, reclassification, recapitalization, merger, consolidation or other reorganization or otherwise. |
| Lock-up Expiration is defined to mean the earlier of (1) 18 months plus the duration of any delay period or blackout period from the closing of the Transactions (the Closing Date) and (2) the date on which the Onex Holders and their permitted transferees first hold less than 10% of the Registrable Securities held by the Onex Holders as of the Closing Date. |
Demand Registration Rights
Under the Registration Rights Agreement, the Onex Holders are entitled to request two demand registrations during the 18 month period following the Closing Date, and the Genesis Holders are entitled to request one demand registration during the 18 month period following the Closing Date; provided, however, that, if the notice of election to exercise a demand registration right is delivered by the Genesis Holders prior to the Lock-up Expiration, the number of Registrable Securities registered on such registration statement by the Genesis Holders (or their successors) is not to exceed 10% of the total outstanding Class A Common Stock on a fully-diluted and as-exchanged basis. The amount specified in any request for demand registration (net of applicable underwriting discounts, selling commissions and stock transfer taxes), is required to be at least $30,000,000 or, if less than $30,000,000, an amount sufficient to permit after taking into account the allocation procedures described below, the sale of all of the Registrable Securities held by whichever of the Onex Holders or the Genesis Holders are requesting such demand registration
In addition, following the Lock-up Expiration, the Genesis Holders are entitled to request unlimited demand registrations until such time as the Genesis Holders no longer hold any Registrable Securities; provided, that, if either (1) prior thereto, the Genesis Holders have exercised their right to request one demand registration as described above or (2) the notice of demand registration by the Genesis Holders is delivered following the 18-month period following the Closing Date, the Holders selling Registrable Securities are required to pay for or reimburse the Company for expenses incurred in connection with the applicable registration statement (a Seller Expense Paid Registration).
Allocation of Securities; Priority on Demand Registrations
In any demand registration effectuated pursuant to the terms of the Registration Rights Agreement, the Registrable Securities to be included in such registration shall be allocated (1) 74.25% to the Onex Holders and (2) 25.75% to the Genesis Holders; provided, however, that if the non-initiating holder declines to sell its maximum allocation in such demand registration, then such unused allotment shall be allocated (1) first, to Registrable Securities held by the initiating holder and (2) second, if the initiating holder declines to sell an amount of Registrable Securities equal to the unused allotment, to shares of Class A Common Stock to be issued by the Company if it, in its sole discretion, determines to sell such shares.
9
If a demand registration involves an underwritten offering and the managing underwriter shall advise the Company that in its opinion the number of securities requested to be included in such registration exceeds the number that can be sold in such offering without having an adverse effect on such offering, including the price at which such securities can be sold, then, the Company shall include in such registration the maximum number of shares that such underwriter advises can be so sold without having such effect, allocated (1) first, to Registrable Securities requested by the Holders to be included in such registration and (2) second, among all shares of Class A Common Stock requested to be included in such registration by any other persons (including securities to be sold for the account of the Company).
Furthermore, if such underwriter determines that the Registrable Securities requested by the Holders to be included in such registration exceeds the number that can be sold in such offering without having an adverse effect on such offering, including the price at which such securities can be sold, then the Registrable Securities that are included in such offering shall be (1) in the case of a demand registration initiated by the Onex Holders or the Genesis Holders during the 18-month period following the Closing Date, apportioned 74.25% to the Onex Holders and 25.75% to the Genesis Holders, and further apportioned among the Onex Holders, on the one hand, and the Genesis Holders, on the other hand, on a pro rata basis in accordance with the number of Registrable Securities held by each such Onex Holder and Genesis Holder, as applicable, and (2) in the case of a demand registration initiated by the Genesis Holders following the Lock-up Expiration, apportioned among the Onex Holders, on the one hand, and the Genesis Holders, on the other hand, on a pro rata basis in accordance with the number of Registrable Securities held by each such Onex Holder and Genesis Holder, as applicable, and further apportioned in such other proportions as shall be mutually be agreed to by all such selling Holders; provided, however, that in the event that the Genesis Holders make the first request of a demand registration during the 18-month period following the Closing Date, then in the case of the first demand registration by the Genesis Holders following the Lock-up Expiration, the Registrable Securities that are included in such offering shall be apportioned 50% to the Onex Holders and 50% to the Genesis Holders, and further apportioned among the Onex Holders, on the one hand, and the Genesis Holders, on the other hand, on a pro rata basis in accordance with the number of Registrable Securities held by each such Onex Holder and Genesis Holder, as applicable.
Piggy-back Registration Rights
The Holders are entitled to piggy-back registration rights whenever the Company proposes to publicly sell or register for sale any of its common equity securities pursuant to a registration statement under the Securities Act (other than a registration statement on Form S-8 or on Form S-4 or any similar successor forms thereto).
Priority on Piggy-back Registrations
If a piggy-back registration is initiated as an underwritten primary registration on behalf of the Company where the primary use of proceeds does not include the repurchase, redemption, subscription or retirement of capital stock of the Company, and the managing underwriter advises the Company in writing that in its opinion the number of securities requested to be included in such registration exceeds the number that can be sold in such offering without having an adverse effect on such offering, including the price at which such securities can be sold, then the Company shall include in such registration the maximum number of shares that such underwriter advises can be so sold without having such effect, allocated (1) first, to the securities the Company proposes to sell, (2) second, to the Registrable Securities requested to be included therein by the Holders and (3) third, among other securities requested to be included in such registration by other security holders of the Company on such basis as such Holders may agree among themselves and the Company.
Furthermore, if such underwriter determines that the Registrable Securities requested by the Holders to be included in such registration exceeds the number that can be sold in such offering without having an adverse effect on such offering, including the price at which such securities can be sold, then the Registrable Securities that are included in such offering shall be (1) if the Company proposes to sell or register for sale such securities prior to the Lock-up Expiration, apportioned 74.25% to the Onex Holders and 25.75% to the Genesis Holders, and further apportioned among the Onex Holders, on the one hand, and the Genesis Holders, on the other hand, on a pro rata basis in accordance with the number of Registrable Securities held by each such Onex Holder and Genesis Holder, as applicable, and (2) if the Company proposes to sell or register for sale such securities after the Lock-up Expiration, apportioned to such Holders on a pro rata basis in accordance with the number of Registrable Securities held by each such Holder, or in each case in such other proportions as shall mutually be agreed to by all such selling Holders.
Shelf Registration Statement
Pursuant to the Registration Rights Agreement, at the request of any Holder, the Company is obligated to use its best efforts to promptly file a registration statement on Form S-3 or such other form under the Securities Act then available to the Company providing for (1) the issuance of Class A Common Stock upon an exchange, from time to time, of Genesis Class A Units held by any Genesis Holder or their respective permitted assigns and (2) the resale pursuant to Rule 415 of the Securities Act from time to time by the requesting Holder of such number of shares of Registrable Securities requested by such Holder to be registered thereby (a Shelf Registration Statement). The Company is required to use its best efforts to cause the Shelf Registration Statement to be declared effective by the SEC as of immediately following the Lock-up Expiration. the Company is obligated to maintain the effectiveness of the Shelf Registration Statement (or a replacement thereof) for as long as any Holder owns any Registrable Securities.
Indemnity; Expenses
In connection with any registration described above, the Company is obligated to indemnify holders selling Registrable Securities in connection with such registration and, except for any Seller Expense Paid Registration, the Company is required to bear all fees, costs and expenses (other than any underwriting discounts or commissions or transfer taxes, if any, and fees of counsel to the selling stockholders, attributable to the sale of Registrable Securities) in connection with such registration.
The foregoing description of the Registration Rights Agreement does not purport to be complete and is qualified in its entirety by reference to the Registration Rights Agreement, a copy of which is filed as Exhibit 5 to this Statement and is incorporated herein by reference.
10
Support Agreement
Concurrently with the execution of the Original Purchase Agreement, the Company, Genesis, OREH, OPLP and USLP executed and delivered a support agreement (the Support Agreement) pursuant to which OREH, OPLP and USLP agreed to, among other things,
| execute and deliver a written consent approving the Purchase Agreement and the Transactions; |
| refrain from selling, transferring, pledging, encumbering, assigning or otherwise disposing of or entering into any contract, option or other arrangement with respect to the transfer of any of their Class B Common Stock unless the transferee is an affiliate of the OREH, OPLP and USLP and assumes the transferors obligations under the Support Agreement; |
| refrain from converting their Class B Common Stock into shares of Class A Common Stock; |
| refrain from entering into any new voting arrangement with respect to any shares of Company Common Stock; |
| immediately cease and cause to be terminated all existing discussions and negotiations with any person with respect to any Competing Proposal (as such term is defined in the Purchase Agreement), and cause each of its subsidiaries and representatives to do the same; |
| refrain from, cause its subsidiaries to refrain from, and use its reasonable best efforts to cause its representatives to refrain from, directly or indirectly (1) soliciting, initiating, causing or knowingly facilitating or encouraging the submission of any Competing Proposal; (2) participating in any negotiations, or furnishing to any person any information relating to the Company or any of its subsidiaries, in each case, knowingly in connection with a Competing Proposal; (3) engaging in discussions with any person in an effort to or attempt to facilitate or encourage a person to make a Competing Proposal; (4) approving or recommending, or proposing publicly to approve or recommend, any Competing Proposal; or (5) entering into any letter of intent, agreement, agreement in principle, memorandum of understanding or similar document or any agreement or commitment providing for any Competing Proposal; |
| consult with Genesis before issuing, and give Genesis the opportunity to review and comment upon, any press release or other public statements with respect to the Transactions, and not to issue any such press release or make any such public statement prior to such consultation, except as may be required by applicable law, court process or by obligations pursuant to any listing agreement with any securities exchange or securities quotation system; and |
| refrain from commencing or participating in, and to take all actions necessary to opt out of any class in any class action with respect to, any claim against the Company, Genesis or any of their respective successors relating to the negotiation, execution and delivery of the Support Agreement or the Purchase Agreement, or the consummation of the Transactions. |
The Support Agreement terminated, by its terms, upon the Closing.
The foregoing description of the Support Agreement does not purport to be complete and is qualified in its entirety by reference to the Support Agreement, a copy of which is filed as Exhibit 6 to this Statement and is incorporated herein by reference.
Item 5. Interest in Securities of the Issuer.
Item 5 of the Original Schedule 13D is hereby amended and restated as follows:
Amount beneficially owned:
Onex Corporation |
14,750,623 | (1) | ||
Onex Partners LP |
11,293,552 | (2) | ||
Onex US Principals LP |
68,820 | (3) | ||
Onex Real Estate Holdings III Inc. |
3,388,251 | (4) | ||
Gerald W. Schwartz |
14,750,623 | (5) |
(1) | Onex may be deemed to own beneficially the shares of Class A Common Stock beneficially owned by (a) OPLP, through Onexs ownership of all of the common stock of Onex Partners GP, Inc., the general partner of Onex Partners GP LP, the general partner of OPLP, (b) USLP through Onexs ownership of all of the equity of Onex American Holdings GP LLC, the general partner of USLP and (c) OREH through Onexs ownership of all of the common stock of OREH. Onex disclaims beneficial ownership of these securities except to the extent of its pecuniary interest therein. |
(2) | All of the shares beneficially owned by OPLP are reported as beneficially owned by each of OPLP, Onex and Mr. Schwartz, notwithstanding the fact that each of Onex and Mr. Schwartz has a pecuniary interest in less than 100% of the shares beneficially owned by OPLP. |
(3) | All of the shares beneficially owned by USLP are reported as beneficially owned by each of USLP, Onex and Mr. Schwartz, notwithstanding the fact that each of Onex and Mr. Schwartz has a pecuniary interest in less than 100% of the shares beneficially owned by USLP. |
(4) | All of the shares beneficially owned by OREH are reported as beneficially owned by each of OREH, Onex and Mr. Schwartz, notwithstanding the fact that each of Onex and Mr. Schwartz has a pecuniary interest in less than 100% of the shares beneficially owned by OREH. |
(5) | Mr. Schwartz, the Chairman, President and Chief Executive Officer of Onex, owns shares representing a majority of the voting rights of the shares of Onex and may be deemed to beneficially own all shares beneficially owned by Onex. The indirect interests of Onex are described in footnote (1). Mr. Schwartz disclaims beneficial ownership of these securities, except to the extent of his pecuniary interest therein. |
11
Percent of class (based on 71,100,511 shares of Class A Common Stock outstanding as of February 6, 2015 and assuming exchange of the Reporting Persons Class B Common Stock into Class A Common Stock):
Onex Corporation |
17.2 | % | ||
Onex Partners LP |
13.2 | % | ||
Onex US Principals LP |
0.1 | % | ||
Onex Real Estate Holdings III Inc. |
3.9 | % | ||
Gerald W. Schwartz |
17.2 | % |
Number of shares as to which the person has:
(i) Sole power to vote or to direct the vote: |
||||
Onex Corporation |
0 | |||
Onex Partners LP |
0 | |||
Onex US Principals LP |
0 | |||
Onex Real Estate Holdings III Inc. |
0 | |||
Gerald W. Schwartz |
0 | |||
(ii) Shared power to vote or to direct the vote(1): |
||||
Onex Corporation |
14,750,623 | |||
Onex Partners LP |
11,293,552 | |||
Onex US Principals LP |
68,820 | |||
Onex Real Estate Holdings III Inc. |
3,388,251 | |||
Gerald W. Schwartz |
14,750,623 | |||
(iii) Sole power to dispose or to direct the disposition of: |
||||
Onex Corporation |
0 | |||
Onex Partners LP |
0 | |||
Onex US Principals LP |
0 | |||
Onex Real Estate Holdings III Inc. |
0 | |||
Gerald W. Schwartz |
0 | |||
(iv) Shared power to dispose or to direct the disposition of: |
||||
Onex Corporation |
14,750,623 | |||
Onex Partners LP |
11,293,552 | |||
Onex US Principals LP |
68,820 | |||
Onex Real Estate Holdings III Inc. |
3,388,251 | |||
Gerald W. Schwartz |
14,750,623 |
(1) | The shares beneficially owned by Onex, OPLP, USLP, OREH and Mr. Schwartz represent 9.6%, 7.4%, 0.04%, 2.2% and 9.6%, respectively, of the aggregate voting power of the outstanding shares of the Issuer (based on an aggregate of 153,441,723 shares of Class A Common Stock, Class B Common Stock and Class C Common Stock outstanding as of February 6, 2015). |
None of the Reporting Persons nor, to the best knowledge of the Reporting Persons, any of the other persons named in Item 2 of this Statement has engaged in any transaction during the past 60 days in any shares of the Class A Common Stock.
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer.
Item 6 of the Original Schedule 13D is hereby supplemented and amended by the information below:
The information contained in Item 4 with respect to the Registration Rights Agreement and Support Agreement is hereby incorporated herein by reference into this Item 6.
In connection with the Transactions, effective as of the Closing, the Investor Stockholders Agreement, dated as of December 27, 2005 (the Stockholders Agreement), between the Company and certain of its then current stockholders and any other stockholder or option holder who becomes a party to the Stockholders Agreement by execution of a joinder agreement was terminated.
12
Item 7. Material to be Filed as Exhibits.
Item 7 of the Original Schedule 13D is hereby amended and restated as follows:
(1) | | Joint Filing Agreement | ||
(2) |
| Purchase and Contribution Agreement, dated as of August 18, 2014, as amended by Amendment No. 1, dated as of January 5, 2015, by and between FC-GEN Operations Investment, LLC, a Delaware limited liability company, and Skilled Healthcare Group, Inc., a Delaware corporation (incorporated by reference to Annex A to the Companys Definitive Information Statement on Schedule 14C filed on January 9, 2015). | ||
(3) | | Third Amended and Restated Certificate of Incorporation of the Company (incorporated by reference to Exhibit 3.1 of the Companys Current Report on Form 8-K filed on February 6, 2015). | ||
(4) | | Amended and Restated Bylaws of the Company (incorporated by reference to Exhibit 3.2 of the Companys Current Report on Form 8-K filed on February 6, 2015). | ||
(5) | | Amended and Restated Registration Agreement, dated as of August 18, 2014 and becoming effective as of the closing date of the Combination, by rights and among Skilled Healthcare Group, Inc. and the parties listed on the schedules thereto (incorporated by reference to Exhibit 10.1 to the Companys Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2014, filed on November 3, 2014). | ||
(6) | | Support Agreement, dated as of August 18, 2014, among FC-GEN Operations Investment, LLC, a Delaware limited liability company, Skilled Healthcare Group, Inc., a Delaware corporation, and the stockholders appearing on the signature pages thereto. | ||
(7)* | | Power of Attorney incorporated by reference to the Amendment to Form 4 to Dura Automotive Systems, Inc. filed with the Securities and Exchange Commission by Gerald W. Schwartz on September 10, 1996. |
* | Previously filed. |
13
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.
DATE: February 11, 2015
ONEX CORPORATION | ||
By: | /s/ Donald W. Lewtas | |
Name: Donald W. Lewtas | ||
Title: Chief Financial Officer | ||
By: | /s/ Andrea E. Daly | |
Name: Andrea E. Daly | ||
Title: Vice President, General Counsel and Secretary | ||
ONEX PARTNERS LP | ||
By: Onex Partners GP LP, its General Partner | ||
By: Onex Partners Manager LP, its Agent | ||
By: Onex Partners Manager GP ULC, its General Partner | ||
By: | /s/ Robert M. Le Blanc | |
Name: Robert M. Le Blanc | ||
Title: Senior Managing Director | ||
By: | /s/ Joshua Hausman | |
Name: Joshua Hausman | ||
Title: Managing Director | ||
ONEX US PRINCIPALS LP | ||
By: | /s/ Robert M. Le Blanc | |
Name: Robert M. Le Blanc | ||
Title: Representative | ||
ONEX REAL ESTATE HOLDINGS III INC. | ||
By: | /s/ Donald W. Lewtas | |
Name: Donald W. Lewtas | ||
Title: President | ||
By: | /s/ Andrea E. Daly | |
Name: Andrea E. Daly | ||
Title: Vice President and Secretary | ||
GERALD W. SCHWARTZ | ||
By: | /s/ Donald W. Lewtas | |
Name: Donald W. Lewtas | ||
Title: As attorney-in-fact for Gerald W. Schwartz |
14
Schedule A
Directors and Executive Officers of Onex Corporation (Onex)
The name, business address and present principal occupation of each director and executive officer of Onex are set forth below. All executive officers and directors listed on this Schedule A are Canadian citizens, except as specifically indicated below. All occupation or employment positions are with Onex, except as specifically indicated below.
Name | Business Address | Present Principal Occupation or Employment | ||
Gerald W. Schwartz | 161 Bay Street P.O. Box 700 Toronto, Ontario Canada M5J 2S1 |
Chairman of the Board, President, Chief Executive Officer and Director | ||
Ewout R. Heersink | 161 Bay Street P.O. Box 700 Toronto, Ontario Canada M5J 2S1 |
Director and Senior Managing Director | ||
Anthony Munk | 161 Bay Street P.O. Box 700 Toronto, Ontario Canada M5J 2S1 |
Senior Managing Director | ||
Donald W. Lewtas | 161 Bay Street P.O. Box 700 Toronto, Ontario Canada M5J 2S1 |
Chief Financial Officer | ||
Timothy A.R. Duncanson | 161 Bay Street P.O. Box 700 Toronto, Ontario Canada M5J 2S1 |
Managing Director | ||
Christine M. Donaldson | 161 Bay Street P.O. Box 700 Toronto, Ontario Canada M5J 2S1 |
Vice President, Finance | ||
Seth M. Mersky (U.S. Citizen) | 161 Bay Street P.O. Box 700 Toronto, Ontario Canada M5J 2S1 |
Senior Managing Director | ||
Andrea E. Daly | 161 Bay Street P.O. Box 700 Toronto, Ontario Canada M5J 2S1 |
Vice President, General Counsel and Secretary | ||
William A. Etherington | 118 Yorkville Avenue Suite 701 Toronto, Ontario Canada M5R 1H5 |
Director; Corporate Director | ||
John B. McCoy (U.S. Citizen) |
6767 North Ocean Blvd., #15 Ocean Ridge, Florida USA 33435 |
Director; Retired |
15
Name | Business Address | Present Principal Occupation or Employment | ||
Christopher A. Govan | 161 Bay Street P.O. Box 700 Toronto, Ontario Canada M5J 2S1 |
Managing Director | ||
Daniel C. Casey | Creson Corporation 170 Merton Street Toronto, Ontario Canada M4S 1A1 |
Director; Chairman, Chief Executive Officer and President of Creson Corporation, an Ontario real estate company | ||
David J. Mansell | 161 Bay Street P.O. Box 700 Toronto, Ontario Canada M5J 2S1 |
Managing Director | ||
Serge Gouin | 740 Pratt Avenue Outremont, Quebec Canada H2V 2T6 |
Director; Retired | ||
Konstantin Gilis | 161 Bay Street P.O. Box 700 Toronto, Ontario Canada M5J 2S1 |
Managing Director | ||
J. Robert S. Prichard, O.C. | Torys LLP 79 Wellington Street West, Suite 3000 Toronto, Ontario Canada M5K 1N2 |
Director; Chairman of Torys LLP | ||
Arni C. Thorsteinson | Shelter Canadian Properties Limited 2600-7 Evergreen Place Winnipeg, Manitoba Canada R3L 2T3 |
Director; President of Shelter Canadian Properties Limited | ||
Heather M. Reisman | Indigo Books & Music Inc. 468 King St. W. Suite 500 Toronto, Ontario M5V 1L8 |
Director; Chair and Chief Executive Officer of Indigo Books & Music Inc. | ||
Peter C. Godsoe | Scotia Plaza, Suite 3005 40 King Street West Toronto, Ontario Canada M5H 1H1 |
Director; Corporate Director | ||
Arianna Huffington (U.S. Citizen) |
The Huffington Post Media Group 770 Broadway, 5th Floor New York, NY 10003 U.S.A. |
Director, Chairman, President and Editor-in-Chief of The Huffington Post Media Group | ||
Tawfiq Popatia | 161 Bay Street P.O. Box 700 Toronto, Ontario Canada M5J 2S1 |
Managing Director |
16
Schedule B
Directors and Executive Officers of Onex Partners GP Inc. (Partners GP)
The name, business address and present principal occupation of each director and executive officer of Partners GP are set forth below. All executive officers and directors listed on this Schedule B are United States citizens, except as specifically indicated below.
Name | Business Address | Present Principal Occupation | ||
Joshua Hausman | c/o Onex Investment Corp. 712 Fifth Avenue New York, NY 10019 |
Director and Vice President; Managing Director of Onex Investment Corp. | ||
Robert M. LeBlanc | c/o Onex Investment Corp. 712 Fifth Avenue New York, NY 10019 |
Director and President; Senior Managing Director of Onex Investment Corp. | ||
Matthew Ross | c/o Onex Investment Corp. 712 Fifth Avenue New York, NY 10019 |
Vice President, Managing Director of Onex Investment Corp. |
17
Schedule C
Directors and Executive Officers of Onex Real Estate Holdings III Inc. (OREH)
The name, business address and present principal occupation of each director and executive officer of OREH are set forth below. All executive officers and directors listed on this Schedule C are Canadian citizens, except as specifically indicated below.
Name | Business Address | Present Principal Occupation | ||
Anthony Munk | 161 Bay Street P.O. Box 700 Toronto, Ontario Canada M5J 2S1 |
Director and Vice President; Senior Managing Director of Onex Corporation | ||
Robert M. LeBlanc (U. S. Citizen) | c/o Onex Investment Corp. 712 Fifth Avenue New York, NY 10019 |
Director and Vice President; Senior Managing Director of Onex Investment Corp. | ||
Donald W. Lewtas | 161 Bay Street P.O. Box 700 Toronto, Ontario Canada M5J 2S1 |
Director and President; Chief Financial Officer of Onex Corporation | ||
Christopher A. Govan | 161 Bay Street P.O. Box 700 Toronto, Ontario Canada M5J 2S1 |
Vice President; Managing Director of Onex Corporation | ||
Andrea E. Daly | 161 Bay Street P.O. Box 700 Toronto, Ontario Canada M5J 2S1 |
Vice President and Secretary; Vice President, General Counsel and Secretary of Onex Corporation | ||
Timothy A.R. Duncanson | 161 Bay Street P.O. Box 700 Toronto, Ontario Canada M5J 2S1 |
Vice President; Managing Director of Onex Corporation | ||
Ewout R. Heersink | 161 Bay Street P.O. Box 700 Toronto, Ontario Canada M5J 2S1 |
Vice President; Senior Managing Director of Onex Corporation | ||
Seth M. Mersky (U.S. Citizen) | 161 Bay Street P.O. Box 700 Toronto, Ontario Canada M5J 2S1 |
Vice President; Senior Managing Director of Onex Corporation |
18
EXHIBIT INDEX
(1) | | Joint Filing Agreement | ||
(2) | | Purchase and Contribution Agreement, dated as of August 18, 2014, as amended by Amendment No. 1, dated as of January 5, 2015, by and between FC-GEN Operations Investment, LLC, a Delaware limited liability company, and Skilled Healthcare Group, Inc., a Delaware corporation (incorporated by reference to Annex A to the Companys Definitive Information Statement on Schedule 14C filed on January 9, 2015). | ||
(3) | | Third Amended and Restated Certificate of Incorporation of the Company (incorporated by reference to Exhibit 3.1 of the Companys Current Report on Form 8-K filed on February 6, 2015). | ||
(4) | | Amended and Restated Bylaws of the Company (incorporated by reference to Exhibit 3.2 of the Companys Current Report on Form 8-K filed on February 6, 2015). | ||
(5) | | Amended and Restated Registration Agreement, dated as of August 18, 2014 and becoming effective as of the closing date of the Combination, by rights and among Skilled Healthcare Group, Inc. and the parties listed on the schedules thereto (incorporated by reference to Exhibit 10.1 to the Companys Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2014, filed on November 3, 2014). | ||
(6) | | Support Agreement, dated as of August 18, 2014, among FC-GEN Operations Investment, LLC, a Delaware limited liability company, Skilled Healthcare Group, Inc., a Delaware corporation, and the stockholders appearing on the signature pages thereto. | ||
(7)* | | Power of Attorney incorporated by reference to the Amendment to Form 4 to Dura Automotive Systems, Inc. filed with the Securities and Exchange Commission by Gerald W. Schwartz on September 10, 1996. |
* | Previously filed. |
19
Exhibit 1
AGREEMENT
JOINT FILING OF SCHEDULE 13D
The undersigned acknowledge and agree that the foregoing statement on Schedule 13D is filed on behalf of each of the undersigned and that all subsequent amendments to this statement on Schedule 13D shall be filed on behalf of each of the undersigned without the necessity of filing additional joint filing agreements. The undersigned acknowledge that each shall be responsible for the timely filing of such amendments, and for the completeness and accuracy of the information concerning it contained therein, but shall not be responsible for the completeness and accuracy of the information concerning others, except to the extent that it knows or has reason to believe that such information is inaccurate. This agreement may be executed in any number of counterparts and all of such counterparts taken together shall constitute one and the same instrument.
IN WITNESS WHEREOF, each of the undersigned has executed this Agreement as of the 11th day of February, 2015.
ONEX CORPORATION | ||
By: | /s/ Donald W. Lewtas | |
Name: Donald W. Lewtas | ||
Title: Chief Financial Officer | ||
By: | /s/ Andrea E. Daly | |
Name: Andrea E. Daly | ||
Title: Vice President, General Counsel and Secretary | ||
ONEX PARTNERS LP | ||
By: Onex Partners GP LP, its General Partner | ||
By: Onex Partners Manager LP, its Agent | ||
By: Onex Partners Manager GP ULC, its General Partner | ||
By: | /s/ Robert M. Le Blanc | |
Name: Robert M. Le Blanc | ||
Title: Senior Managing Director | ||
By: | /s/ Joshua Hausman | |
Name: Joshua Hausman | ||
Title: Managing Director | ||
ONEX US PRINCIPALS LP | ||
By: | /s/ Robert M. Le Blanc | |
Name: Robert M. Le Blanc | ||
Title: Representative | ||
ONEX REAL ESTATE HOLDINGS III INC. | ||
By: | /s/ Donald W. Lewtas | |
Name: Donald W. Lewtas | ||
Title: President | ||
By: | /s/ Andrea E. Daly | |
Name: Andrea E. Daly | ||
Title: Vice President and Secretary |
GERALD W. SCHWARTZ | ||
By: | /s/ Donald W. Lewtas | |
Name: Donald W. Lewtas | ||
Title: as attorney-in-fact for Gerald W. Schwartz |
Exhibit 6
Execution Version
SUPPORT AGREEMENT
This SUPPORT AGREEMENT (the Agreement) is made as of August 18, 2014, among FC-GEN Operations Investment, LLC, a Delaware limited liability company (Greystone), Skilled Healthcare Group, Inc., a Delaware corporation (Sonoma), and the other parties appearing on the signature pages hereto (each a Stockholder and collectively, the Stockholders).
WHEREAS, Greystone and Sonoma, have entered into a Purchase and Contribution Agreement, dated as of the date hereof (as the same may be amended or supplemented, the Purchase Agreement), pursuant to which, among other things, through a series of transactions the businesses, assets and liabilities of Greystone and Sonoma will be combined;
WHEREAS, capitalized terms used but not defined herein shall have the meanings set forth in the Purchase Agreement;
WHEREAS, each Stockholder is currently a holder of shares of Sonoma Class B Stock (all shares so held or hereafter acquired, the Subject Shares); and
WHEREAS, as a condition to its willingness to enter into the Purchase Agreement, Greystone has requested that the Stockholders enter into this Agreement.
NOW, THEREFORE, the parties hereto agree as follows:
Section 1. Representations and Warranties of the Stockholders. Each Stockholder, severally and not jointly, hereby represents and warrants, as to itself, to Greystone as follows:
(a) Authority; Execution and Delivery; Enforceability. Such Stockholder has all requisite power and authority to execute this Agreement and to consummate the transactions contemplated hereby. The execution and delivery by such Stockholder of this Agreement and consummation of the transactions contemplated hereby have been duly authorized by all necessary action on the part of such Stockholder. Such Stockholder has duly executed and delivered this Agreement and, assuming the due authorization, execution and delivery of this Agreement by Greystone, this Agreement constitutes the legal, valid and binding obligation of such Stockholder, enforceable against such Stockholder in accordance with its terms, subject, as to enforcement of remedies, to bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the rights and remedies of creditors generally and to the effect of general principles of equity. The execution and delivery by such Stockholder of this Agreement do not, and the consummation of the transactions contemplated hereby and compliance with the terms hereof will not, conflict with, or result in any violation of, or default (with or without notice or lapse of time, or both) under, or give rise to a right of termination, cancellation or acceleration of any obligation or to loss of a material benefit under, or result in the creation of any Lien upon any of the properties or assets of such Stockholder under, any provision of any note, bond, mortgage, indenture, contract, agreement, lease, license, permit, franchise or other instrument or obligation to which such Stockholder is a party or by which any properties or assets of such Stockholder are bound or, subject to the filings and other matters referred to in the next sentence, any provision of any Law applicable to such Stockholder or the
properties or assets of such Stockholder. No consent, approval, order, authorization or permit of, or registration, declaration or filing with, or notification to, any Governmental Authority is required to be obtained or made by or with respect to such Stockholder in connection with the execution, delivery and performance of this Agreement or the consummation of the transactions contemplated hereby, other than such reports under Sections 13(d) and 16 of the Exchange Act as may be required in connection with this Agreement and the transactions contemplated hereby.
(b) The Subject Shares. Such Stockholder is the record and beneficial owner of, and has good and valid title to, its Subject Shares, free and clear of any Liens. Such Stockholder has the sole right to vote such Subject Shares, and none of such Subject Shares is subject to any voting trust or other agreement, arrangement or restriction with respect to the voting of such Subject Shares, except for that certain Investor Stockholders Agreement dated December 27, 2005 or as contemplated by this Agreement.
Section 2. Covenants of the Stockholders. Each Stockholder, severally and not jointly, covenants and agrees as follows:
(a) Such Stockholder shall deliver the Written Consent pursuant to Section 228 of the DGCL.
(b) Such Stockholder shall not (i) sell, transfer, pledge, encumber, assign or otherwise dispose of (including by gift) (collectively, Transfer) or, other than this Agreement, enter into any contract, option or other arrangement (including any profit sharing arrangement) with respect to the Transfer of, any of such Stockholders Subject Shares to any person (other than pursuant to the Purchase Agreement and the Ancillary Agreements) unless the transferee is an Affiliate of such Stockholder and assumes such Stockholders obligations under this Agreement, (ii) convert such Stockholders Subject shares into shares of Sonoma Class A Stock or (iii) other than as expressly contemplated by the Purchase Agreement, enter into any new voting arrangement, whether by proxy, voting agreement or otherwise, with respect to any shares of Sonoma Common Stock, and shall not commit or agree to take any of the foregoing actions.
(c)
(i) Except as permitted by Section 4.02 of the Purchase Agreement, such Stockholder shall, and shall cause each of its Subsidiaries and Representatives to, immediately cease and cause to be terminated all existing discussions and negotiations with any person conducted heretofore with respect to any Competing Proposal. From and after the date of this Agreement until the earlier of the Closing or the date, if any, on which this Agreement is terminated, and except as otherwise provided for in this Agreement or the Purchase Agreement, such Stockholder agrees that it shall not (and shall not permit any of its Subsidiaries to), and that it shall use its reasonable best efforts to cause its Representatives not to, directly or indirectly: (i) solicit, initiate, cause or knowingly facilitate or encourage (including by way of furnishing information) the submission of any Competing Proposal; (ii) participate in any negotiations, or furnish to any person any information relating to Sonoma or any of its
2
Subsidiaries, in each case, knowingly in connection with a Competing Proposal; (iii) engage in discussions with any person in an effort to or attempt to facilitate or encourage a person to make a Competing Proposal; (iv) approve or recommend, or propose publicly to approve or recommend, any Competing Proposal; or (v) enter into any letter of intent, agreement, agreement in principle, memorandum of understanding or similar document or any agreement or commitment providing for any Competing Proposal.
(ii) Notwithstanding anything to the contrary in this Agreement, to the extent Sonoma is permitted to take any actions as set forth in Section 4.02 of the Purchase Agreement with respect to a Competing Proposal and such stockholder has not breached Section 2(c)(i), such Stockholder and its Representatives will be free to participate in any discussions or negotiations regarding such Competing Proposal (including, without limitation, any related stockholders consent or voting agreement) with the Person making such Competing Proposal and to otherwise take action to the extent Sonoma may take such action, provided that such action by such Stockholder and its Representatives would be permitted to be taken by Sonoma pursuant to Section 4.02(c) of the Purchase Agreement.
(iii) For purposes of this Section 2(c), Sonoma and its Representatives will be deemed not to be Representatives of any Stockholder. For the avoidance of doubt, nothing in this Section 2(c) shall affect in any way the obligations of any Person (including Sonoma) under Section 4.02 of the Purchase Agreement.
(iv) Notwithstanding the foregoing, the phrase cause its Subsidiaries, not permit its Subsidiaries or similar phrases in this Section 2(c) shall not include an obligation of such Stockholder to cause or not permit Sonoma or its Subsidiaries to take any such action.
(d) Prior to the Closing, such Stockholder shall consult with Greystone before issuing, and give Greystone the opportunity to review and comment upon, any press release or other public statements with respect to the Transactions or the Ancillary Transactions, and shall not issue any such press release or make any such public statement prior to such consultation, except as may be required by applicable Law, court process or by obligations pursuant to any listing agreement with any securities exchange or securities quotation system.
(e) Such Stockholder hereby agrees not to commence or participate in, and to take all actions necessary to opt out of any class in any class action with respect to, any claim, derivative or otherwise, against Sonoma, Greystone or any of their respective successors relating to the negotiation, execution and delivery of this Agreement or the Purchase Agreement or the consummation of the transactions contemplated hereby, the Transactions or any Ancillary Transaction (other than any claims against Greystone to the extent relating to or based upon any alleged breach by Greystone of this Agreement).
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(f) In furtherance of this Agreement, such Stockholder hereby authorizes and instructs Sonoma to instruct its transfer agent to enter a stop transfer order with respect to all of the Subject Shares with respect to any Transfer not permitted hereunder, and Sonoma hereby agrees to so instruct its transfer agent.
(g) Such Stockholder hereby authorizes Sonoma and Greystone to publish and disclose in any announcement or disclosure required by the SEC and in the Information Statement information with respect to such Stockholders identity and ownership of the Subject Shares, this Agreement and such Stockholders obligations under this Agreement.
Section 3. Termination.
(a) This Agreement shall terminate with regard to each Stockholder upon the earliest of (i) the termination of this Agreement by the mutual written consent of Greystone and such Stockholder, (ii) the Closing and (iii) the termination of the Purchase Agreement in accordance with its terms.
(b) Notwithstanding the foregoing, (i) termination of this Agreement shall not prevent any party hereunder from seeking any remedies (at law or in equity) against any other party hereto for such partys breach of this Agreement and (ii) Section 2(e) and Section 5 of this Agreement shall survive the termination of this Agreement. In no event shall any of the representations, warranties, covenants and other agreements in this Agreement (other than the covenants and other agreements set forth in Section 2(e) and Section 5), including any rights arising out of any breach of such representations, warranties, covenants and other agreements (other than the covenants and other agreements set forth in Section 2(e) and Section 5), survive the Closing.
Section 4. Additional Matters.
(a) Each Stockholder is executing this Agreement solely in its capacity as the record holder and beneficial owner of such Stockholders shares of Sonoma Common Stock, and nothing in this Agreement shall limit or otherwise restrict any officer or director of such Stockholder or any of its Affiliates from taking or not taking any action in his or her capacity as an officer of Sonoma or any Subsidiary of Sonoma or a member of the Sonoma Board (or any committee thereof) or the board of directors of any Subsidiary of Sonoma (or any committee thereof).
(b) From and after the Closing, solely for regulatory, financial reporting and Tax reporting and filing purposes of any of the Stockholders or their affiliates, for a period of seven (7) years after the Closing, Sonoma shall, and shall cause its Subsidiaries to, (i) retain the books and records relating to Sonoma and its Subsidiaries with respect to periods prior to the Closing in a manner reasonably consistent with the prior practice of Sonoma and its Subsidiaries, and (ii) upon reasonable advance notice and subject to applicable Law relating to the exchange of information (it being agreed that Sonoma shall, and shall cause its Subsidiaries to, use commercially reasonable efforts to make reasonable and appropriate substitute disclosure arrangements under circumstances in which such Laws apply), Sonoma shall, and shall cause its Subsidiaries to, afford to the Stockholders and their respective Representatives, during normal
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business hours following the Closing Date, and in a manner as to not unreasonably interfere with the normal operation of Sonoma and its Subsidiaries, reasonable access to Sonomas and each of its Subsidiaries properties, books, Contracts and records, and to their officers, employees, accountants, counsel and other Representatives and, during such period Sonoma shall, and shall cause its Subsidiaries to, make available to the Stockholders all information concerning their businesses, properties and personnel as they may reasonably request for the purposes described above, provided, however, that such right shall not (x) apply to information related to any dispute between any Stockholder or its affiliates, on the one hand, and Sonoma or its Subsidiaries, on the other hand, (y) apply to information subject to an attorney-client privilege except if such privilege is shared with the requesting Stockholder or (z) cause Sonoma or any of its Subsidiaries to violate any applicable confidentiality obligations (it being further agreed that at the request of any Stockholder, Sonoma shall use its commercially reasonable efforts to make reasonable and appropriate substitute disclosure arrangements). Any such request for access under this Section 4(b) shall be made to the Chief Financial Officer or General Counsel of Sonoma.
Section 5. General Provisions.
(a) Amendments. This Agreement may not be amended except by an instrument in writing signed by each of the parties hereto.
(b) Notice. All notices and other communications hereunder shall be in writing and shall be deemed given (and shall be deemed to have been given upon receipt) if delivered personally or sent by overnight courier (providing proof of delivery) to Greystone or Sonoma in accordance with Section 8.02 of the Purchase Agreement and to any Stockholder at its address as set forth in Sonomas stock records (or at such other address for a party as shall be specified by like notice).
(c) Interpretation. When a reference is made in this Agreement to a Section or subsection, such reference shall be to a Section or subsection of this Agreement unless otherwise indicated. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Wherever the words include, includes or including are used in this Agreement, they shall be deemed to be followed by the words without limitation.
(d) Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule or law, or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the extent possible.
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(e) Counterparts. This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement. This Agreement shall become effective against Greystone when one or more counterparts have been signed by Greystone and delivered to the Stockholders. This Agreement shall become effective against any Stockholder when one or more counterparts have been executed by such Stockholder and delivered to Greystone. Each party need not sign the same counterpart. Facsimile signatures or signatures received as a .pdf attachment to electronic mail shall be treated as original signatures for all purposes of this Agreement.
(f) Entire Agreement; No Third-Party Beneficiaries. This Agreement (i) constitutes the entire agreement and supersedes all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof and (ii) is not intended to confer upon any person other than the parties hereto any rights or remedies hereunder.
(g) Governing Law. This Agreement shall be governed by, and construed in accordance with, the Laws of the State of Delaware, regardless of the Laws that might otherwise govern under applicable principles of conflicts of laws thereof.
(h) Assignment. Neither this Agreement nor any of the rights, interests or obligations under this Agreement shall be assigned, in whole or in part, by operation of law or otherwise, by Greystone without the prior written consent of the Stockholders or by any Stockholder without the prior written consent of Greystone, and any purported assignment without such consent shall be void. Subject to the preceding sentences, this Agreement will be binding upon, inure to the benefit of, and be enforceable by, the parties and their respective successors and permissible assigns.
(i) Expenses. All costs and expenses incurred in connection with the transactions contemplated by this Agreement shall be paid by the party incurring such costs and expenses.
(j) Enforcement; Jurisdiction. The parties hereto agree that irreparable damage would occur and that they would not have any adequate remedy at Law in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties hereto shall be entitled to an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement in the Chancery Court of the State of Delaware (or in the event, but only in the event, that such court does not have subject matter jurisdiction over such action or proceeding, the Superior Court of the State of Delaware or the United States District Court for the District of Delaware) (such courts, the Chosen Courts), without proof of actual damages, this being in addition to any other remedy to which they are entitled at law or in equity. In addition, each of the parties irrevocably (i) submits itself to the exclusive jurisdiction of the Chosen Courts for the purpose of any litigation directly or indirectly based upon, relating to or arising out of this Agreement or the transactions contemplated hereby or the negotiation, execution or performance hereof, (ii) agrees that it will not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from the Chosen Courts and (iii) agrees that it will not bring any action relating to this Agreement or the transactions contemplated hereby in any court other than the Chosen Courts. Each of the parties hereby irrevocably waives, and agrees not to assert, by way of motion, as a defense, counterclaim or otherwise, in any litigation with respect to this Agreement, (x) any claim that it is not personally subject to the jurisdiction of the Chosen Courts for any reason other than the failure to serve in
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accordance with this Section 5(j), (y) any claim that it or its property is exempt or immune from jurisdiction of any such court or from any legal process commenced in Chosen Courts (whether through service of notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise) and (z) to the fullest extent permitted by the applicable Law, any claim that (A) the suit, action or proceeding in such court is brought in an inconvenient forum, (B) the venue of such suit, action or proceeding is improper or (C) this Agreement, or the subject matter of this Agreement, may not be enforced in or by such courts. Each of the parties hereby irrevocably consents to service being made through the notice procedures set forth in Section 5(b) and agrees that service of any process, summons, notice or document by personal delivery pursuant to the provisions set forth in Section 5(b) shall be effective service of process for any litigation in connection with this Agreement. Nothing in this Section 5(j) shall affect the right of any party to serve legal process in any other manner permitted by Law.
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IN WITNESS WHEREOF, each party has duly executed this Agreement, all as of the date first written above.
FC-GEN Operations Investment, LLC | ||
By: | /s/ Thomas DiVittorio | |
Name: Thomas DiVittorio | ||
Title: Chief Financial Officer | ||
Skilled Healthcare Group, Inc. | ||
By: | /s/ Robert H. Fish | |
Name: Robert H. Fish | ||
Title: Chief Executive Officer |
[Signature Pages to Support Agreement]
Onex Real Estate Holdings III Inc. | ||
By: | /s/ Robert M. Le Blanc | |
Name: Robert M. Le Blanc Title: Vice President | ||
By: | /s/ Donald F. West | |
Name: Donald F. West Title: Vice President | ||
Onex Partners LP | ||
By: Onex Partners GP LP, its General Partner By: Onex Partners Manager LP, its Agent By: Onex Partners GP ULC, its General Partner | ||
By: | /s/ Robert M. Le Blanc | |
Name: Robert M. Le Blanc | ||
Title: Senior Managing Director | ||
By: | /s/ Donald F. West | |
Name: Donald F. West | ||
Title: Vice President and Secretary | ||
Onex US Principals LP | ||
By: | Onex American Holdings GP LLC, its General Partner | |
By: | /s/ Robert M. Le Blanc | |
Name: Robert M. Le Blanc | ||
Title: Director | ||
By: | /s/ Donald F. West | |
Name: Donald F. West | ||
Title: Director |
[Signature Pages to Support Agreement]