CHEVY CHASE, MD - CapitalSource Inc. (NYSE: CSE) today announced that on December 24 it received approximately $119 million of cash proceeds from HUD mortgage financing on long-term care properties that will be included among the 40 facilities expected to be sold to Omega Healthcare Investors Inc. (NYSE: OHI) on or about April 1, 2010, as per the terms of the Securities Purchase Agreement between the parties announced on November 17, 2009.
CapitalSource used the proceeds from the HUD mortgages to add to parent company liquidity and reduce the committed capacity of the Company's syndicated bank facility to $325 million.
"We are very pleased that the HUD financing and Omega step one transactions have closed before year end. With these closings and the previously announced sale of 37 skilled nursing homes, we have realized approximately $347 million (before expenses) of the approximately $495 million anticipated from the monetization of our net lease asset portfolio," commented James J. Pieczynski, President of the CapitalSource Healthcare Real Estate business.
"The debt reduction and added liquidity from the transactions closed last week significantly strengthen our balance sheet going into 2010," said Donald F. Cole, CapitalSource CFO. "With these closings completed and the anticipated closing of step two of the Omega transaction next year, we are very comfortable with our liquidity profile for 2010."
CapitalSource Inc. (NYSE: CSE) is a commercial lender that provides financial products to middle market businesses and offers depository products and services in southern and central California through its wholly owned subsidiary CapitalSource Bank. As of September 30, 2009, CapitalSource had total commercial assets of $10.4 billion and $4.4 billion in deposits. The Company is headquartered in Chevy Chase, MD.
Source: CapitalSource Inc.