CapitalSource (CSE) Closes Second Sale of Long-Term Care Facilities to Omega (OHI); Sees Proceeds of $293M

June 9, 2010 4:47 PM EDT
CapitalSource Inc. (NYSE: CSE) today announced the completion of the sale of 63 long-term care facilities to Omega Healthcare Investors Inc. (NYSE: OHI), in accordance with the terms of the securities purchase agreement between the parties executed in November of 2009.

In this closing, CapitalSource received net proceeds from Omega of $293 million, of which $261 million was utilized to repay indebtedness associated with 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 in consideration of the granting of the purchase option for the facilities sold today.

The one remaining transaction under the securities purchase agreement between the parties for the sale of 40 long-term care facilities requires approval from the Department of Housing and Urban Development of the assumption by Omega of the HUD mortgages CapitalSource holds on those facilities. As previously reported, the agreed upon purchase price for that transaction is $270 million, which will include the assumption of $204 million of HUD and other debt by Omega and net cash proceeds to CapitalSource of $66 million.

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