Notes payable and other debt consists of the following:



	December 31,
Amounts in (000's)	2016			2015
Senior debt—guaranteed by HUD ^(a)	34,473			25,469
Senior debt—guaranteed by USDA ^(a)	22,518			26,463
Senior debt—guaranteed by SBA ^(a)	2,319			3,548
Senior debt—bonds	7,145			7,230
Senior debt—other mortgage indebtedness	5,639			51,128
Other debt	1,063			2,638
Convertible debt ^(c)	9,200			9,200
Sub Total	82,357			125,676
Deferred financing costs	(2,196		)	(2,712		)
Unamortized discounts on bonds	(191		)	(205		)
Total	79,970			122,759
Less current portion	13,154			50,960
Less: portion included in liabilities of disposal group held for sale ^(b)	—			958
Notes payable and other debt, net of current portion	$	66,816		$	70,841

^(a)HUD, U.S. Department of Agriculture ("USDA"), U.S. Small Business Administration ("SBA").

^(b)Includes no deferred financing costs at December 31, 2016 and December 31, 2015 respectively.

^(c) On December 8, 2016, the Company announced the Tender Offer for any and all of its $7.7 million convertible subordinated notes due April 30, 2017. On January 10, 2017, the Company accepted for payment $6.7 million pursuant to the Tender Offer, (see Note 19 - Subsequent events).

The following is a detailed listing of the debt facilities that comprise each of the above categories:



(Amounts in 000’s)
Facility		Lender	Maturity	Interest Rate ^(a)		December 31, 2016		December 31, 2015
Senior debt - guaranteed by HUD
The Pavilion Care Center		Red Mortgage	12/01/2027	Fixed	4.16%	$	1,434	$	1,534
Hearth and Care of Greenfield		Red Mortgage	08/01/2038	Fixed	4.20%	2,191		2,251
Woodland Manor		Midland State Bank	10/01/2044	Fixed	3.75%	5,447		5,556
Glenvue		Midland State Bank	10/01/2044	Fixed	3.75%	8,457		8,628
Autumn Breeze		KeyBank	01/01/2045	Fixed	3.65%	7,352		7,500
Georgetown^(c)		Midland State Bank	01/10/2046	Fixed	2.98%	3,723		—
Sumter Valley ^(d)		Key Bank	01/01/2047	Fixed	3.70%	5,869		—
	Total					$	34,473	$	25,469
Senior debt - guaranteed by USDA^(e)
Attalla		Metro City	09/30/2035	Prime + 1.50%	5.50%	$	7,189	$	7,400
Coosa		Metro City	09/30/2035	Prime + 1.50%	5.50%	6,483		6,671
Mountain Trace		Community B&T	01/24/2036	Prime + 1.75%	5.75%	4,384		4,507
Southland		Bank of Atlanta	07/27/2036	Prime + 1.50%	6.00%	4,462		4,576
Homestead ^(b)		Square 1	10/14/2036	Prime + 1.00%	5.75%	—		3,309
	Total					$	22,518	$	26,463
Senior debt - guaranteed by SBA
College Park		CDC	10/01/2031	Fixed	2.81%	$	1,611	$	1,697
Stone County^(b)		CDC	07/01/2032	Fixed	2.42%	—		1,123
Southland		Bank of Atlanta	07/27/2036	Prime + 2.25%	5.75%	708		728
	Total					$	2,319	$	3,548


^(a)	Represents cash interest rates as of December 31, 2016 as adjusted for applicable interest rate floor limitations, if applicable. The rates exclude amortization of deferred financing costs which range from 0.08% to 1.92% per annum.

^(b)On October 6, 2016, the Company completed the sale of the Arkansas Facilities (see Note 11 - Discontinued Operations).

^(c)On September 29, 2016, the Company closed a HUD-guaranteed financing in the amount of $3.7 million, maturing in 2046 and bearing an interest rate of 2.98% (interest rate excludes annual mortgage insurance premiums), which refinanced approximately $3.1 million in debt previously owed to the PrivateBank with respect to the Georgetown Facility.

^(d) On December 14, 2016, the Company refinanced the Sumter Credit Facility with $5.9 million of new mortgage debt maturing in 2047 and bearing an interest rate of 3.70% (interest rate excludes annual mortgage insurance premiums). The HUD-guaranteed mortgage refinances $5.9 million of short term debt that bore an interest rate of 4.71% at September 30, 2016.


^(e)	For the five skilled nursing facilities, the Company has term loans insured 70% to 80% by the USDA with financial institutions. The loans have an annual renewal fee for the USDA guarantee of 0.25% of the guaranteed portion. The loans have prepayment penalties of 4% to 6% through 2016, which decline 1% each year capped at 1% for the remainder of the term.



(Amounts in 000’s)
Facility		Lender	Maturity	Interest Rate ^(a)		December 31, 2016		December 31, 2015
Senior debt - bonds
Eaglewood Bonds Series A		City of Springfield, Ohio	05/01/2042	Fixed	7.65%	$	6,610	$	6,610
Eaglewood Bonds Series B		City of Springfield, Ohio	05/01/2021	Fixed	8.50%	535		620
	Total					$	7,145	$	7,230


^(a)	Represents cash interest rates as of December 31, 2016 as adjusted for applicable interest rate floor limitations, if applicable. The rates exclude amortization of deferred financing costs which range from 0.08% to 1.92% per annum.



(Amounts in 000’s)						December 31,		December 31,
Facility		Lender	Maturity	Interest Rate ^(a)		2016		2015
Senior debt - other mortgage indebtedness
Sumter Valley ^(c)		PrivateBank	09/01/2016	LIBOR + 4.25%	4.71%	$	—	$	5,123
Georgetown ^(g)		PrivateBank	09/01/2016	LIBOR + 4.25%	4.71%	—		4,026
Northridge ^(b)		PrivateBank ^(d)	09/01/2016	LIBOR + 4.25%	5.50%	—		4,230
Woodland Hills ^(b)		PrivateBank ^(d)	09/01/2016	LIBOR + 4.25%	5.50%	—		3,557
Abington/Cumberland ^(b)		PrivateBank ^(d)	09/01/2016	LIBOR + 4.25%	5.50%	—		4,029
Heritage Park ^(b)		PrivateBank ^(d)	09/01/2016	LIBOR + 3.50%	6.00%	—		3,370
River Valley ^(b)		PrivateBank ^(d)	09/01/2016	LIBOR + 3.50%	6.00%	—		3,989
Little Rock/West Markham ^{(b), (f)}		PrivateBank ^(d)	12/31/2016	LIBOR + 4.00%	6.00%	—		11,399
Quail Creek ^(e)		Congressional Bank	09/30/2017	LIBOR + 4.75%	5.75%	4,432		5,000
Northwest		First Commercial	12/31/2017	Prime	5.00%	1,207		1,285
Stone County ^(b)		Metro City	06/08/2022	Prime + 2.25%	6.25%	—		1,697
College Park ^(f)		Bank of Las Vegas	05/01/2031	Prime + 2.00%	6.25%	—		2,465
Hembree Rd. Building ^(h)		Fidelity Bank	12/01/2017	Fixed	5.50%	—		958
	Total					$	5,639	$	51,128


^(a)	Represents cash interest rates as of December 31, 2016 as adjusted for applicable interest rate floor limitations, if applicable. The rates exclude amortization of deferred financing costs which range from 0.08% to 1.92% per annum.


^(b)	On October 6, 2016, the Company completed the sale of the Arkansas Facilities (see Note 11 - Discontinued Operations).

^(c)

On March 24, 2016, the Company obtained a lender commitment to extend the maturity date of the Sumter Credit Facility with PrivateBank from September 2016 to June 2017, subject to definitive documentation and certain closing conditions, which commitment expired on November 30, 2016. On June 13, 2016, the Company received a commitment to refinance the Sumter Credit Facility, subject to definitive documentation and certain closing conditions. On December 14, 2016, the Company refinanced existing mortgage debt with Key Bank on the Sumter Facility with $5.9 million of new mortgage debt maturing in 2047 and bearing an interest rate of 3.70% (interest rate excludes annual mortgage insurance premiums). The HUD-guaranteed mortgage refinances $5.9 million of short term debt that bore an interest rate of 4.71% at September 30, 2016.


^(d)	On March 24, 2016, the Company obtained the release of approximately $3.9 million of restricted cash funds and applied the amounts as additional principal payments related to certain of the above debt facilities with the PrivateBank.


^(e)	On September 19, 2016, the Company obtained an option to extend the maturity date of the Quail Creek Credit Facility from September 2017 to September 2018, which management intends to exercise.

^(f) On October 6, 2016, the related debt was repaid with a portion of the net proceeds from the sale of the Arkansas Facilities (see Note 11 - Discontinued Operations).

^(g)On September 29, 2016, the Company closed a HUD-guaranteed financing with Midland State Bank in the amount of $3.7 million, maturing in 2046 and bearing an interest rate of 2.98% (interest rate excludes annual mortgage insurance premiums), which refinanced approximately $3.1 million in debt previously owed to the PrivateBank with respect to the Georgetown Facility.


^(h)	Debt included in liabilities of disposal group held for sale. On April 25, 2016, the Company completed the sale of the related office building located in Roswell, Georgia (see Note 11 - Discontinued Operations).



(Amounts in 000’s)
Lender	Maturity	Interest Rate		December 31, 2016		December 31, 2015
Other debt
First Insurance Funding	02/28/2017	Fixed	3.99%	$	20	$	14
Key Bank	10/17/2017	Fixed	0.00%	496		680
Reliant Rehabilitation	11/15/2016	Fixed	7.00%	—		944
Pharmacy Care of Arkansas	02/08/2018	Fixed	2.00%	547		1,000
Total				$	1,063	$	2,638



(Amounts in 000’s)
Facility	Conversion price		Maturity	Interest Rate ^(a)		December 31, 2016		December 31, 2015
Convertible debt
Issued July 2012	$	4.25	10/31/2017	Fixed	10.00%	$	1,500	$	1,500
Issued March 2015^(b)	$	4.25	04/30/2017	Fixed	10.00%	7,700		7,700
Total						$	9,200	$	9,200

^(a) Represents cash interest rates as of December 31, 2016. The rates exclude amortization of deferred financing costs which range from 0.08% to 1.92% per annum.

^(b)On December 8, 2016, the Company announced the Tender Offer for any and all of its $7.7 million convertible subordinated notes due April 3, 2017. On January 10, 2017, the Company accepted for payment $6.7 million pursuant to the Tender Offer (see Note 19 - Subsequent Events).