CHEVY CHASE, MD-Omega Healthcare Investors is finalizing the multi-step purchase of 40 long-term care facilities from affiliates of CapitalSource Inc.--a deal that the two companies announced in November 2009. 

The 4,882-bed portfolio traded for an aggregate purchase price of approximately $270 million. That amount included the assumption of $182 million of in debt guaranteed by the US Department of Housing and Urban Development, $20 million of other debt, $65 million in cash and $3 million of Omega common stock. Omega has issued CapitalSource an additional $15 million of common stock for certain escrow amounts transferred at closing. The 40 facilities are located in two states. They are part of 13 in-place triple net leases among two operators.

This piece of the transaction follows the closing of Omega’s purchase of 63 long-term facilities from CapitalSource earlier this month. With that closing, CapitalSource received net proceeds from Omega of $293 million, $261 million of which was used to repay debt on the facilities sold. After adjustments for prepaid rental income, CapitalSource received $30 million in cash at closing, in addition to the $25 million in Omega common stock received in December 2009.

The sale of the 40 long-term care facilities took longer to close as it required approval from the Department of Housing and Urban Development. The deal held benefits for both companies, despite its complexity. It allowed CapitalSource to exit its ownership strategy in the healthcare space, although it will continue to focus on lending to the space, according to an earlier interview with CapitalSource's Steve Gilleland. It also allowed Omega to acquire an extensive portfolio in this sector at an aggressive price point.