Ventas buys back $138.6 million 8¾%, 6¾% notes in year to date

By Angela McDaniels

Tacoma, Wash., Nov. 5 - Ventas, Inc. has purchased $138.6 million of its 8¾% senior notes due 2009 and 6¾% senior notes due 2010 in the year to date.

The company said it purchased $5.9 million of the 8¾% notes in the second quarter and $12.6 million in the third quarter. After the end of the third quarter, it purchased $105.8 million of the 8¾% notes and $14.3 million of the 6¾% notes.

The purchases were made at a net discount in open-market transactions, according to the company's 10-Q report for the third quarter filed with the Securities and Exchange Commission.

The repurchases led to a loss on extinguishment of debt of $0.2 million in the second quarter and $0.3 million in the third quarter, and Ventas expects to record a gain on extinguishment of debt in the fourth quarter.

The company said it may seek to retire or purchase additional notes for cash and/or in exchange for equity securities. Such repurchases or exchanges would be made in open-market purchases or privately negotiated transactions and would depend on prevailing market conditions and liquidity requirements, among other factors.

Ventas ended the quarter with a net debt to pro forma EBITDA ratio of 4.7 times and had $106 million of cash and short-term cash investments as of Tuesday.

The Chicago-based health care real estate investment trust reported that it has no remaining principal debt maturities in 2008 and has $219 million of principal debt maturities in 2009.

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