Ventas launches $310 million tender offers for four series of notes

By Angela McDaniels

Tacoma, Wash., April 6 - Ventas, Inc. has begun tender offers to purchase four series of notes issued by operating partnership Ventas Realty, LP and subsidiary Ventas Capital Corp., according to a company news release.

The offer covers the companies' $102.08 million 6¾% senior notes due 2010, $186.82 million 9% senior notes due 2012, $175 million 6 5/8% senior notes due 2014 and $170 million 7 1/8% senior notes due 2015.

For each $1,000 principal amount, Ventas is offering $1,034.25 for the 6¾% notes, $1,050.00 for the 9% notes, $952.75 million for the 6 5/8% notes and $966.75 for the 7 1/8% notes. In each case, the payout includes a $30.00 premium for notes tendered by the early tender deadline, which is 5 p.m. ET on April 20.

The tender offers will expire at midnight ET on May 1.

The company said it will spend up to $310 million on the purchases.

The acceptance priority level is 1 for the 6¾% notes and 9% notes, 2 for the 6 5/8% notes and 3 for the 7 1/8% notes.

Ventas will first accept all notes tendered with an acceptance level priority of 1. It will then accept the remaining tendered notes in order of acceptance priority level up to the $310 million cap. The 6 5/8% notes and 7 1/8% notes may be subject to proration if the offers are oversubscribed.

The company will also pay accrued interest up to but excluding the settlement date. Interest is not counted toward the $310 million cap.

Completion of the offers is subject to the completion of the company's proposed offerings of common stock and senior notes due 2016. Proceeds from these offerings, together with cash on hand and/or revolving credit facilities borrowings, will be used to fund the tender offers.

The dealer managers are Banc of America Securities LLC (call Liability Management Group at 888 292-0070 or 646 855-3401), BMO Capital Markets and KeyBanc Capital Markets. The information agent is Global Bondholder Services Corp. (866 857-2200 or 212 430-3774).

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

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