CapitalSource Inc. (NYSE: CSE) recently announced that it has entered into a definitive agreement to sell substantially all of its healthcare net lease portfolio to Omega Healthcare Investors, Inc. (NYSE: OHI), subject to usual and customary closing conditions and adjustments. The sale, covering 143 long term care facilities, will be completed in a series of closings that will provided net proceeds to CapitalSource of approximately $280 million cash and $51 million of OHI stock. Omega is expected to assume or pay off $529 million of debt related to the assets being purchased.
"This transaction is another important step in our ongoing transformation to a bank model," commented John K. Delaney, CapitalSource Chairman and CEO. "We intend to use the cash proceeds principally to pay down debt, which further strengthens our balance sheet and liquidity. After exploring a number of alternatives in recent months, we believe this direct asset sale is the best result for our shareholders," concluded Delaney.
"As we have been saying for quite some time, we anticipated that realizing the equity value in our net lease portfolio could be a process that stretched out over many months. This transaction will permit us to more quickly capture that value, recognize a gain and further simplify our business, as we seek to finalize the monetization of the remaining facilities within this portfolio," added James J. Pieczynski, President of the CapitalSource Health Care Real Estate business.
For more information on the steps in the transaction view the full press release.