CHEVY CHASE, Md., Dec. 1 CapitalSource Inc. (NYSE: CSE) announced it closed yesterday on the sale of 37 skilled nursing homes for an all-cash sales price of $100 million. The Company will use the proceeds to repay $55 million of debt associated with the assets sold, with the remainder adding to parent company liquidity.
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"This transaction is the final step in the monetization of our net lease portfolio. Together with an estimated $331 million in cash and stock from our recently announced sale of 143 facilities to Omega Healthcare Investors, Inc. (NYSE: OHI) and our anticipated net HUD mortgage financing proceeds of $119 million, we expect to generate a total of approximately $495 million when all of the associated closings are completed. That cash will be used to substantially reduce the balance on our syndicated bank facility and will add meaningfully to parent company liquidity," commented John K. Delaney, CapitalSource Chairman and CEO.
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"With completion of the recently announced asset sales, we will exit the skilled nursing home ownership business, but actively continue to provide financing for owners and operators in the long-term-care industry, an area of historic expertise at CapitalSource," commented James J. Pieczynski, President of the CapitalSource Healthcare Real Estate Business. "Available liquidity and our low cost of funds at CapitalSource Bank position us to be a source of competitive financing for small and mid-size business owners, so we expect our market-leading health care franchise will be an area of significant growth in the months ahead," concluded Pieczynski.
About CapitalSource
CapitalSource Inc. (NYSE: CSE) is a commercial lender that provides financial products to middle market businesses and offers depository products and services in southern and central California through its wholly owned subsidiary CapitalSource Bank. As of September 30, 2009, CapitalSource had total commercial assets of $10.4 billion and $4.4 billion in deposits. The Company is headquartered in Chevy Chase, MD. Visit www.capitalsource.com for more information.
Forward Looking Statements
This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including certain plans, expectations, goals, and projections and including statements about transactions involving our healthcare net lease portfolio, anticipated HUD financing, our anticipated cash proceeded and intended use of such proceeds, our liquidity, our intention and ability to provide financing for owners and operators in the long-term-care industry, and our intention to grow our healthcare lending business, all of which are subject to numerous conditions, requirements, adjustments, options, assumptions, risks, and uncertainties. All statements contained in this release that are not clearly historical in nature are forward-looking, and the words "anticipate," "assume," "intend," "believe," "expect," "estimate," "plan," "goal," "will," "outlook," "continue," "look forward," "should," and similar expressions are generally intended to identify forward-looking statements. All forward-looking statements (including statements regarding future financial and operating results and future transactions and closings and their results) involve risks, uncertainties and contingencies, many of which are beyond our control which may cause actual results, performance, or achievements to differ materially from anticipated results, performance or achievements. Actual results could differ materially from those contained or implied by such statements for a variety of factors, including without limitation: the proposed transactions may not be completed on the proposed terms and schedule or at all; we may not receive the HUD financing; we may not generate the expected cash proceeds; changes in economic or market conditions; continued or worsening recession in the overall economy or disruptions in credit and other markets; movements in interest rates and lending spreads; continued or worsening credit losses, charge-offs, reserves and delinquencies; our ability to successfully and cost effectively operate our business; competitive and other market pressures on product pricing and services; success and timing of our business strategies; the nature, extent, and timing of governmental actions and reforms; changes in tax laws or regulations affecting our business; and other factors described in CapitalSource's 2008 Annual Report on Form 10-K and documents subsequently filed by CapitalSource with the Securities and Exchange Commission. All forward-looking statements included in this news release are based on information available at the time of the release. We are under no obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
SOURCE CapitalSource Inc.
