New Issue: Ventas upsizes to $350 million, 10-year notes yield 7 1/8%, five years yield 6¾%

By Paul A. Harris

St. Louis, May 26 - Ventas Realty priced an upsized and restructured $350 million issue of senior notes in two tranches (Ba3/BB) on Thursday, according to a market source.

The Louisville, Ky.-based healthcare real estate investment trust priced an upsized $175 million issue of 10-year senior notes at par to yield 7 1/8%. Price talk was in the 7¼% area. JP Morgan and Merrill Lynch & Co. were joint bookrunners. Banc of America Securities LLC, UBS Investment Bank, Citigroup, Calyon Securities and Cohen & Steers were co-managers. The tranche was upsized from $150 million.

Ventas Realty also priced an upsized $175 million tranche of five-year bullets at par to yield 6¾%. Price talk was in the 6 7/8% area. JP Morgan, Merrill Lynch and Banc of America Securities were joint bookrunners for the tranche, which was also upsized from $150 million. UBS Investment Bank, Calyon Securities and Cohen & Steers were co-managers.

The total bond sale was upsized to $350 million from $300 million. The deal had originally been in the market as a single $300 million 10-year non-call-five tranche.

Proceeds from the Rule 144A notes will be used to fund the acquisition of Provident Senior Living Trust.

Issuer:	Ventas Realty
Amount:	$350 million (increased from $300 million)
Security description:	Senior notes
Trade date:	May 26
Settlement date:	June 7
Ratings:	Moody's: Ba3
	Standard & Poor's: BB
10-year notes
Amount:	$175 million (upsized from $150 million)
Maturity:	June 1, 2015
Bookrunners:	JP Morgan, Merrill Lynch & Co.
Co-managers:	Banc of America Securities LLC, UBS Investment Bank, Citigroup, Calyon Securities, Cohen & Steers
Coupon:	7 1/8%
Price:	Par
Yield:	7 1/8%
Spread:	305 basis points
Call features:	Callable on June 1, 2010 at 103.563, 102.375, 101.888, par on and after June 1, 2013
Equity clawback:	Until June 1, 2008 for 35% at 107.125
Price talk:	7¼% area
Five-year notes
Amount:	$175 million (upsized from $150 million)
Maturity:	June 1, 2010
Bookrunners:	JP Morgan, Merrill Lynch & Co., Banc of America Securities LLC
Co-managers:	UBS Investment Bank, Calyon Securities, Cohen & Steers
Coupon:	6¾%
Price:	Par
Yield:	6¾%
Spread:	293 basis points
Call protection:	Make-whole call at Treasuries plus 50 basis points
Equity clawback:	Until June 1, 2008 for 35% at 106.75
Price talk:	6 7/8% area

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