CHICAGO-Ventas Inc, a real estate investment trust focused on the healthcare industry, has begun a tender offer in order to buy the outstanding senior notes that have been issued by Ventas’s operating joint venture of Ventas Realty, and Ventas Capital Corp. The senior notes total up to $310 million.
To raise the money, Ventas is offering 8.5 million shares of common stock and $200 million of senior notes due in 2016. Additionally, the REIT plans to offer its underwriters an additional 1.3 million shares of common stock to cover overallotments.
Any additional capital raised in this period will be used to repay debt as possibly for future purchases and investments, according to the release.
According to a release on the offer, Merrill Lynch & Co., Citi and UBS Investment Bank will act as joint book-running managers for the common stock offering.
Ventas owns property in 43 states and two Canadian provinces. The company focuses on healthcare assets including senior housing communities, skilled nursing facilities, hospitals and medical office buildings. The REIT is headed by Debra Cafaro, CEO and president.