Ventas sells senior loan to GE Capital

By Sara Rosenberg

New York, Jan. 6 - Ventas Inc. sold the senior loan originated in its recent transaction with Trans Healthcare, Inc. to GE Capital. Ventas was then able to use the proceeds to reduce its outstanding debt, which approximates $756 million.

Furthermore, the company repurchased $783,000 of 8¾% senior notes due 2009 and $33.179 million of 9% senior notes due 2012 with proceeds from the recently completed stock offering.

"With our recent equity offering and the sale of our senior THI loan to GE Capital, we have repaid over $140 million in debt," said Debra A. Cafaro, president and chief executive officer, in a news release. "We believe that our strengthened balance sheet and significant capital availability and liquidity will allow us to continue to improve our company for the benefit of our shareholders in 2003."

The transaction with Trans Healthcare consisted of a senior loan, a mezzanine loan and a sale-leaseback. Originally, the senior loan that was funded by Ventas was sized at $45 million. In connection with the sale of the loan to GE, Ventas resized the loan to $50 million and reduced the principal amount of the mezzanine loan to $17 million from $22 million.

The loan is secured by first mortgages on 17 skilled nursing facilities and one related assisted-living facility.

Ventas is a Louisville, Ky. healthcare real estate investment trust that owns healthcare-related facilities.

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