They have $100m in cash I think, so they can service the loans until they get new operators or sell off assets. I'm not suggesting buying, I'm just suggesting there value here at some point. The only issue with HSO is the capital structure, not that their hospitals aren't busy servicing clients. HSO equity needs to be written off and debt need to be adjusted for a new buyer, but it's not like there is no customers or other operators that could/would step in - it just depends on the rent it'll get set at in the future and the CAPEX required for the new operator. This is a distressed portfolio, it could present an enticing reposition arb.
HCW Price at posting:
90.5¢ Sentiment: Sell Disclosure: Not Held
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