Press release from Business Wire
Omega Healthcare Closes on Purchase of 40 Long-Term Care Facilities from CapitalSource
Tuesday, June 29, 2010
Omega Healthcare Closes on Purchase of 40 Long-Term Care Facilities from CapitalSource16:30 EDT Tuesday, June 29, 2010 HUNT VALLEY, Md. (Business Wire) -- Omega Healthcare Investors, Inc. (NYSE:OHI) (“Omega”) today announced its purchase of 40 long-term care facilities from affiliates of CapitalSource Inc. (“CapitalSource”) pursuant to the securities purchase agreement executed and announced in November of 2009, for an aggregate purchase price of approximately$270 million, which includes the assumption of $182 million of indebtedness guaranteed by the U.S. Department of Housing and Urban Development (“HUD”), $20 million of other indebtedness, $65 million cash and $3 million of Omega common stock. In addition, Omega issued to CapitalSource an additional $15 million of Omega common stock as consideration for certain escrow amounts transferred at closing. The 40 facilities acquired by Omega represent 4,882 available beds located in 2states and are part of 13 in-place triple net leases among 2 operators. Omega Healthcare Investors, Inc. is a real estate investment trust investing in and providing financing to the long-term care industry. At March 31, 2010, Omega owned or held mortgages on 293 skilled nursing facilities, assisted living facilities and other specialty hospitals with approximately 34,279 licensed beds (32,835 available beds) located in 32 states and operated by 35 third-party healthcare operating companies. In addition, Omega has two closed facilities currently held for sale. This announcement includes forward-looking statements regarding the HUD closing contemplated by the securities purchase agreement, and the timing and impact thereof.Actual results may differ materially from those reflected in such forward-looking statements as a result of a variety of factors, including, among other things: (i) the ability of the parties to satisfy the various conditions to the completion of the remaining transaction; (ii) potential adjustments to the form and amount of consideration payable in connection with the remaining transaction pursuant to the securities purchase agreement; and (iii) potential unforeseen costs associated with the transaction.Statements regarding future events and developments and Omega's future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements.Omega undertakes no obligation to update any forward-looking statements contained in this material.