CHEVY CHASE, Md., June 9 CapitalSource Inc. (NYSE: CSE) today announced the completion of the sale of 63 long-term care facilities to Omega Healthcare Investors Inc. (NYSE: OHI), in accordance with the terms of the securities purchase agreement between the parties executed in November of 2009.
In this closing, CapitalSource received net proceeds from Omega of $293 million, of which $261 million was utilized to repay indebtedness associated with the facilities sold. After adjustments for prepaid rental income, CapitalSource received $30 million in cash at closing, in addition to the $25 million in Omega common stock received in December 2009 in consideration of the granting of the purchase option for the facilities sold today.
The one remaining transaction under the securities purchase agreement between the parties for the sale of 40 long-term care facilities requires approval from the Department of Housing and Urban Development of the assumption by Omega of the HUD mortgages CapitalSource holds on those facilities. As previously reported, the agreed upon purchase price for that transaction is $270 million, which will include the assumption of $204 million of HUD and other debt by Omega and net cash proceeds to CapitalSource of $66 million.
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 March 31, 2010, CapitalSource had total commercial assets of $8.7 billion and $4.6 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 the sale to Omega Healthcare Investors Inc. of assets in our healthcare net lease portfolio, including the conditions to close the next step of the transaction and approval from the Department of Housing and Urban Development, 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 transaction may not be completed on the proposed terms and schedule or at all; we may not generate the expected proceeds; the ability of the parties to satisfy the conditions to the completion of the remaining transaction contemplated by the purchase agreement; potential adjustments to the form and amount of consideration payable in connection with the remaining transactions pursuant to the purchase agreement; potential unforeseen costs associated with the transactions; 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 2009 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.