New Issue: Ventas upsized $225 million 10.5-year notes price at 99.375 to yield 6.834%

By Paul A. Harris

St. Louis, Sept. 12 - Ventas Realty, LP and Ventas Capital Corp., which are wholly owned subsidiaries of Ventas, Inc., combined to price an upsized $225 million issue of 6¾% 10.5-year senior notes (Ba2/BB+) at 99.375 to yield 6.834% in a quick-to-market transaction on Tuesday, according to an informed source.

The yield came toward the tight end of the 6 7/8% area price talk.

Banc of America Securities LLC and Citigroup were joint bookrunners for the registered issue, which was upsized from $200 million.

Proceeds will be used to repay the Louisville, Ky.-based health care and senior housing real estate investment trust's existing credit facility in anticipation of completing the proposed acquisition of properties from Senior Care, Inc. in a transaction that is expected in the fourth quarter of this year.

Issuer:	Ventas Realty, LP/Ventas Capital Corp.
Amount:	$225 million (increased from $200 million)
Maturity:	April 1, 2017
Security description:	Senior notes
Bookrunners:	Banc of America Securities LLC, Citigroup
Co-managers:	Merrill Lynch & Co., UBS Investment Bank, Deutsche Bank Securities, KeyBanc Capital Markets, BMO
Coupon:	6¾%
Price:	99.375
Yield:	6.834%
Spread:	206 bps
Call features:	Make-whole call at Treasuries plus 50 bps until April 1, 2012, then at 103.375, 102.25, 101.125, par on and after April 1, 2015
Equity clawback:	Until April 1, 2010 for 35% at 106.75
Trade date:	Sept. 12
Settlement date:	Sept. 19
Ratings:	Moody's: Ba2
	Standard & Poor's: BB+
Distribution:	SEC registered
Price talk:	6 7/8% area

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