Transaction Tape: Five Star, HCN, Cambridge, Kisco, AdCare

Five Star Quality Care, Inc. Announces Exercise of Right to Sell Auction Rate Securities at Par

Five Star Quality Care, Inc. (NYSE Amex: FVE) announced that it has exercised its right to sell $68.4 million of auction rate securities (ARS) to UBS AG and its affiliates (UBS) at par. This transaction nets Five Star $32.1 million of cash after the repayment of $36.3 million of debt which was secured by the ARS. This transaction was completed on June 30, 2010.

In November 2008, Five Star entered into a settlement with UBS regarding its ARS. The settlement was made in connection with UBS’s settlement with the Securities and Exchange Commission, the New York Attorney General and other state agencies related to UBS’s sale and marketing of ARS. Under the terms of the settlement, Five Star obtained the right to require UBS to repurchase its ARS at 100% of par value at Five Star’s option during the period beginning June 30, 2010 and ending July 2, 2012. In connection with the settlement, UBS also provided Five Star with a non-recourse credit facility secured by Five Star’s investments in ARS. The credit facility was retired in connection with this transaction.


Health Care REIT, Inc. Announces Gross Investments of $292.9 Million for Second Quarter 2010

Health Care REIT, Inc. (NYSE:HCN) announced that it completed $292.9 million of gross investments during the second quarter of 2010. During the quarter, the company had dispositions of $14.6 million, resulting in net new investments of $278.3 million. For the six months ended June 30, 2010, the company completed $877.6 million of gross investments, offset by $47.5 million of asset sales and loan payoffs, which generated $830.1 million of net new investments. More details…

Cambridge Closes 4 Midwest Transactions

Cambridge Realty Capital recently announced four financing transactions totaling over $16 million in FHA-insured HUD loans for senior housing facilities in the Midwest.  Cambridge closed an 11.6 million refinance with a FHA-insured HUD Lean loan to Orchard Villa I, a 164-bed skilled- care nursing facility in Oregon, Ohio and a $4.68 million FHA-insured HUD LEAN loan for Transcendent Healthcare of Boonville, a 72-bed skilled nursing home in Boonville, Indiana.  The company also announced financing for a $1.39 million FHA-insured first mortgage loan to refinance McGill Terrace Apartments, a 48-unit apartment complex at 821-829 49th Street in Chicago, Illinois and for a 12 month construction to perm loan of $8.46 million for Alden Estates in Skokie, Illinois.

Kisco Senior Living Closes Escrow on Villa de San Antonio in Texas

KSL Texas Communities SA LLC, an affiliate of national owner and operator Kisco Senior Living, has closed escrow, as of Friday, June 11, 2010, on the purchase of Villa de San Antonio (VSA), a senior living community located in San Antonio. The VSA community provides 114 independent living apartments, 55 assisted living apartments and 24 cottage homes.


According to Andy Kohlberg, president and founder of Kisco Senior Living, “We’ve identified Texas as a growth area and are pleased to become part of the San Antonio community.” Kohlberg, who along with members of Kisco’s Leadership Services team, recently set out on a discovery process with existing residents and associates at VSA. “We feel it is important to listen to the community members’ preferences as well as understanding their desires for the future,” he says.

AdCare Health Systems Proposes Offering of Common Stock

AdCare Health Systems, Inc., an Ohio-based long-term care, home care and management company, announced that intends to offer shares of its common stock in an underwritten public offering. C.K. Cooper & Company is acting as the sole manager for the public offering.  The net proceeds from the secondary offering would be used for acquisition purposes, working capital and general corporate purposes.