CHEVY CHASE, MD-CapitalSource has completed the sale of 63long-term care facilities to Omega Healthcare Investors--amulti-step deal that was first announced lastNovember.
With the closing, CapitalSource received net proceeds from Omegaof $293 million, $261 million of which was used to repay debt onthe facilities sold. After adjustments for prepaid rental income,CapitalSource received $30 million in cash at closing, in additionto the $25 million in Omega common stock received in December2009.
There is one remaining transaction under the securities purchaseagreement for the sale of 40 long-term care facilities that stillrequires approval from the Department of Housing and UrbanDevelopment due to the assumption by Omega of the HUD mortgagesCapitalSource holds on those facilities. The purchase price forthat particular transaction is $270 million, which will include theassumption of $204 million of HUD and other debt by Omega and netcash proceeds to CapitalSource of $66 million.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
