SEC Form 4 · accession 0001179022-15-000014
GENTIVA HEALTH SERVICES INC · GTIV
Statement of changes in beneficial ownership, as filed. Original on EDGAR ↗
Reporting owner
David A Causby
Officer — Pres. & Ch. Operating Officer
Period of report
Feb 2, 2015
Accepted (ET)
Feb 4, 2015 · 4:21 pm EST
Rule 10b5-1 plan
unknown — predates the checkbox
Issuer CIK
0001096142
Table I — non-derivative securities
| Security | Date | Code | Shares | Price | A/D | Owned after | D/I | Nature of ownership |
|---|---|---|---|---|---|---|---|---|
| Common stockF1,F2,F3 | Feb 2, 2015 | D | 170,706 | — | D | 0 | D |
Table II — derivative securities
| Security | Conv. / exercise price | Date | Code | Shares | A/D | Exercisable | Expires | Underlying | Underlying shares | Owned after | D/I |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Employee stock option (right to buy)F4,F5,F6 | $11.46 | Feb 2, 2015 | D | 15,400 | D | — | Feb 19, 2020 | Common stock | 15,400 | 0 | D |
| Employee stock option (right to buy)F4,F5,F7 | $10.89 | Feb 2, 2015 | D | 44,000 | D | — | Feb 19, 2021 | Common stock | 44,000 | 0 | D |
| Employee stock option (right to buy)F4,F5,F8 | $19.52 | Feb 2, 2015 | D | 8,000 | D | — | Jan 5, 2017 | Common stock | 8,000 | 0 | D |
| Employee stock option (right to buy)F4,F5,F8 | $26.43 | Feb 2, 2015 | D | 25,000 | D | — | Feb 3, 2019 | Common stock | 25,000 | 0 | D |
| Employee stock option (right to buy)F4,F5,F8 | $25.61 | Feb 2, 2015 | D | 9,700 | D | — | Jan 6, 2017 | Common stock | 9,700 | 0 | D |
| Employee stock option (right to buy)F4,F5,F8 | $26.58 | Feb 2, 2015 | D | 16,600 | D | — | Jan 5, 2018 | Common stock | 16,600 | 0 | D |
Explanation of responses
- F1On February 2, 2015, Kindred Healthcare, Inc., a Delaware corporation ("Kindred"), acquired the Issuer pursuant to that certain Agreement and Plan of Merger between the Issuer, Kindred and Kindred Healthcare Development 2, Inc., a Delaware corporation and a wholly-owned subsidiary of Kindred ("Merger Sub"), dated as of October 9, 2014 (the "Merger Agreement"). In accordance with the Merger Agreement, Merger Sub merged with and into the Issuer, with the Issuer continuing as the surviving corporation and a wholly-owned subsidiary of Kindred (the "Merger"). The number reported consists of the following: (i) 62,505.871 shares held directly by the reporting person, (ii) 34,400 shares of restricted stock that vested 100% as a result of the Merger, and (iii) 73,800 shares of restricted stock that did not vest as a result of the Merger. The Merger is more fully described in the Issuer's proxy statement/prospectus, dated December 18, 2014.
- F2Pursuant to the Merger Agreement, on February 02, 2015, the effective date of the Merger, (i) each share held by the reporting person was exchanged for $14.50 in cash, without interest (the "Cash Consideration"), and 0.257 of a share of Kindred common stock (the "Stock Consideration" and together with the Cash Consideration, the "Merger Consideration"); (ii) each share of restricted stock that vested as a result of the Merger was exchanged for the Merger Consideration, subject to withholding taxes; and (iii) each share of restricted stock that did not vest as a result of the Merger received merger consideration in the form of a Kindred restricted cash award in the amount of $1,070,100 and 18,967 Kindred restricted shares. Pursuant to the Amended and Restated Employment Agreement, dated as of February 1, 2015, between Kindred Healthcare Operating, Inc., a Delaware corporation, Kindred and David A. Causby (the "Employment Agreement"), each Kindred restricted cash award and Kindred
- F3(cont'd) restricted share award received by Mr. Causby in connection with the transactions described herein, shall be subject to immediate, automatic, and full accelerated vesting without any further action by any party in the event Mr. Causby's employment with Kindred is terminated (i) by Kindred for any reason (including Cause, as defined in the Employment Agreement), (ii) Mr. Causby for Good Reason, as defined in the Employment Agreement, or (iii) by reason of Mr. Causby's death or Disability, as defined in the Employment Agreement.
- F4Pursuant to the Employment Agreement, at the effective time of the Merger (i) each Issuer option that was outstanding immediately prior to the effective time with a per share exercise price below the sum of (a) the value of the Stock Consideration (based on the average closing price per share of Kindred common stock on the New York Stock Exchange for the ten consecutive trading days ending immediately prior to the closing date of the Merger (the "Kindred Closing Price")) and (b) the Cash Consideration (each, an "In-the-Money Option"), that is or will become vested as a result of the Merger, was canceled and, in lieu of the treatment of such In-the-Money Option contemplated under the Merger Agreement, Mr. Causby received a one-time grant of 135,940 restricted stock units of Kindred; and (ii) unvested In-the-Money Options were canceled. Pursuant to the Merger Agreement, on February 2, 2015, the effective date of the Merger, each Issuer option that was outstanding immediately prior to the
- F5(cont'd) effective time with a per share exercise price at or above the sum of (a) the value of the Stock Consideration (based on the Kindred Closing Price) and (b) the Cash Consideration was converted into an option to purchase a number of shares of Kindred common stock determined by multiplying the number of shares of Gentiva common stock subject to such Gentiva option by a fraction, the numerator of which is the sum of (A) the product of the Stock Consideration multiplied by the Kindred Closing Price and (B) the Cash Consideration and the denominator of which is the Kindred Closing Price.
- F6The options vest in three equal annual installments beginning on the first anniversary of the date of grant, which was February 19, 2013
- F7The options vest in three equal annual installments beginning on the first anniversary of the date of grant, which was February 19, 2014.
- F8The options are fully vested and exercisable.