Ventas Realty closes $500 million two-tranche unsecured term loan

By Jennifer Chiou

New York, Dec. 21 - Ventas, Inc. subsidiary Ventas Realty, LP entered into a new $500 million unsecured term loan with a weighted average maturity of 4.5 years.

The loan consists of a three-year tranche and a five-year tranche. It has an accordion feature, which allows the company to expand the capacity to a total of $900 million.

Pricing is currently Libor plus 125 basis points.

J.P. Morgan Securities LLC and Citigroup Global Markets Inc. were the joint bookrunners with Citibank, NA as administrative agent and JPMorgan Chase Bank, NA as syndication agent.

"This new term loan reinforces our strategy of using our strong capital position to continue to grow and diversify our enterprise for the benefit of stakeholders," Ventas chairman and chief executive officer Debra A. Cafaro said in a news release.

Proceeds will be used to repay borrowings on the company's $2 billion unsecured revolving credit facility and for general corporate purposes.

With the closing of the term loan, the company terminated the term loan that it assumed with its acquisition of Nationwide Health Properties, Inc. That loan would have matured in June 2012.

Ventas is a health-care real estate investment trust based in Chicago.

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