Ventas fills financing term of tender offers for four series of notes

By Susanna Moon

Chicago, April 13 - Ventas, Inc. said it satisfied the financing condition of its tender offers for the 6.75% senior notes due 2010, 9% senior notes due 2012, 6.625% senior notes due 2014 and 7.125% senior notes due 2015 issued by operating partnership Ventas Realty, LP and wholly owned subsidiary Ventas Capital Corp.

Completion of the company's offerings of common stock and senior notes due 2016, each of which closed April 13, was a condition to the tender offers. Proceeds from the offerings, together with cash on hand or revolving credit facilities borrowings, will be used to fund the tender offers.

The offers began on April 6.

Ventas previously said it is offering, for each $1,000 principal amount, $1,034.25 for the 6.75% notes, $1,050.00 for the 9% notes, $952.75 for the 6.625% notes and $966.75 for the 7.125% notes. In each case, the payout includes a $30.00 premium for notes tendered by the early tender deadline of 5 p.m. ET on April 20.

The tender offers will expire at midnight ET on May 1.

The company said it will spend up to $310 million on the purchases.

The acceptance priority level is 1 for the 6.75% notes and 9% notes, 2 for the 6.625% notes and 3 for the 7.125% notes.

Ventas will first accept all notes tendered with an acceptance level priority of 1. It will then accept the remaining tendered notes in order of acceptance priority level up to the $310 million cap. The 6.625% notes and 7.125% notes may be subject to proration if the offers are oversubscribed.

The company will also pay accrued interest up to but excluding the settlement date. Interest is not counted toward the $310 million cap.

The dealer managers are Banc of America Securities LLC (call Liability Management Group at 888 292-0070 or 646 855-3401), BMO Capital Markets and KeyBanc Capital Markets. The information agent is Global Bondholder Services Corp. (866 857-2200 or 212 430-3774).

Ventas is a health-care real estate investment trust based in Chicago.

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