Omega to use existing facility for purchase of CapitalSource assets

By Sara Rosenberg

New York, Nov. 17 - Omega Healthcare Investors Inc. plans on drawing down most of the $191 million of availability under its $200 million credit facility to help fund the purchase of 80 long-term care facilities from CapitalSource Inc., according to a news release.

The roughly $565 million acquisition will be completed in two steps.

At the first closing, which is expected to take place on Dec. 31, Omega will acquire 40 facilities and the option to purchase 63 additional facilities for $294.4 million, consisting of $184.2 million in cash and a promissory note, $50.8 million in common stock and the assumption of $59.4 million of 6.8% debt.

At the second closing, which is expected to occur on April 1, 2010, the company will acquire 40 additional facilities for $270.4 million, consisting of $65.1 million in cash, the assumption of $20 million of 9% subordinated debt, the assumption of $55.7 million 6.41% HUD debt and the anticipated assumption of $129.6 million 4.85% HUD debt.

The credit facility draw is expected to finance the first closing.

The company is currently reviewing multiple financing proposals in anticipation of the second closing.

Omega is a Hunt Valley, Md.-based real estate investment trust investing in and providing financing to the long-term care industry.

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