New Issue: Ventas $75 million add-on to 6½% notes due June 2016 yields 6.567%

By Paul A. Harris

St. Louis, Dec. 9 - Ventas Realty, LP and Ventas Capital Corp. priced a $75 million add-on to their 6½% senior notes due June 1, 2016 (Ba2/BB+) at 99.50 on Friday, resulting in a yield of 6.567%, according to a syndicate source.

Banc of America Securities LLC and UBS Investment Bank ran the books for the Rule 144A with registration rights add-on. The co-managers were Citigroup, JP Morgan and Merrill Lynch & Co.

Proceeds will be used to repay the company's revolving credit facility.

The original $125 million issue priced Tuesday, also at 99.50. The total issue size following the Friday add-on is $200 million.

The issuer is a Louisville, Ky.-based health care real estate investment trust.

Issuers:	Ventas Realty, LP and Ventas Capital Corp.
Amount:	$75 million
Maturity:	June 1, 2016
Security description:	Add-on to 6½% senior notes
Bookrunners:	Banc of America Securities LLC, UBS Investment Bank
Co-managers:	Citigroup, JP Morgan and Merrill Lynch & Co.
Coupon:	6½%
Price:	99.50
Yield:	6.567%
Spread:	205 basis points
Call features:	Callable after June 1, 2011 at 103.25, 102.167, 101.083, par on and after June 1, 2014
Equity clawback:	Until June 1, 2009 for 35% at 106.50
Trade date:	Dec. 9
Settlement date:	Dec. 20 with accrued interest
Ratings:	Moody's: Ba2
	Standard & Poor's: BB+

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