Sun Healthcare to be ACQUIRED by Genesis Healthcare and 2 Hot Stocks to Watch
Sun Healthcare Group Inc (NASDAQ:SUNH) has signed a definitive agreement in which it will be acquired by Genesis Healthcare. Sabre explains, “We view the proposed acquisition of Sun by Genesis as a positive. Given the size of Genesis and its overall financial strength, we believe that the credit profile of our tenant base is improved. We expect to obtain a parent guaranty from Genesis to replace the existing Sun guaranty. Additionally, we expect the guaranty to include a tangible net worth covenant and expect to obtain an amendment to our master lease agreement with Sun to improve the annual rent escalators to a fixed 2.5% increase and to include cross-default provisions with Genesis’ term loan, all of which should improve the overall quality of our leases.” Shares of Sun Healthcare Group Inc are trading 36.16% higher today.
ConAgra Foods, Inc. (NYSE:CAG) states that its Q4 Commercial Foods segment sales growth reflects raised volumes for Lamb Weston’s potato operation, as well as improved flour milling operations, and price increases spanning the segment is made necessary by input cost inflation. The firm believes these factors will also assist in good profit growth. Shares of ConAgra Foods, Inc. are trading 3.5% higher today.
Ligand Pharmaceuticals Inc. (NASDAQ:LGND): Onyx Pharmaceuticals’ potential blood cancer treatment has been endorsed by a panel of cancer specialists. Wednesday, with only one abstention, the U.S. Food and Drug Administration panel voted 11-0 in favor of the use of carfilzomib as treatment for patients suffering from advanced forms of multiple myeloma and have seen no response to other drugs. The FDA should make its decision about the drug by July 27, and though it is not forced to follow the panel’s advice, it usually does. Shares of Ligand Pharmaceuticals Inc. are trading 9.43% higher today.
Want news like this in real-time so you can get an edge? Click here for Wall St. Cheat Sheet Pro.