Commercial lender CapitalSource Inc. (CSE) Tuesday said that on December 24 it received about $119 million of cash proceeds from HUD mortgage financing on long-term care properties that will be included among the 40 facilities expected to be sold to Omega Healthcare Investors Inc. (OHI) on or about April 1, 2010 as per the terms of the Securities Purchase Agreement between the parties announced on November 17, 2009.
Chevy Chase, Maryland-based CapitalSource said it used the proceeds from the HUD mortgages to add to parent company liquidity and reduce the committed capacity of its syndicated bank facility to $325 million.
James Pieczynski, President of CapitalSource Healthcare Real Estate business, said, "We are very pleased that the HUD financing and Omega step one transactions have closed before year end."
"With these closings and the previously announced sale of 37 skilled nursing homes, we have realized approximately $347 million (before expenses) of the approximately $495 million anticipated from the monetization of our net lease asset portfolio," Pieczynski added.
On November 17, Omega Healthcare announced that it had acquired 40 long-term care facilities from CapitalSource and that it may acquire up to an additional 103 CapitalSource properties in a series of leveraged transactions that could ultimately aggregate $860 million.
In the first closing, Omega Healthcare acquired 40 facilities, representing 5,264 available beds, located in 12 states are part of 15 in-place triple net leases among 12 operators. The 15 leases generate approximately $31 million of annualized revenue.
The second closing, including 40 facilities, is expected to occur on April 1, 2010, and the additional 63 Facilities to be closed at any time through December 31, 2011.
CSE is currently trading at $3.96, up 5.04%, on the New York Stock Stock Exchange, while OHI is trading at $19.60, down 0.91%.
For comments and feedback: editorial@rttnews.com