Ventas to use sale proceeds, long-term debt, equity capital to fund $1.75 billion Ardent buyout

By Lisa Kerner

Charlotte, N.C., April 6 – Ventas, Inc. intends to use proceeds of its previously announced dispositions and other long-term debt and equity capital sources to fund its acquisition of Ardent Medical Services, Inc., said chairman and chief executive officer Debra Cafaro.

Cafaro made her comments during a conference call to discuss the transaction details.

On Monday, Ventas announced the signing of a definitive agreement to acquire privately owned Ardent for $1.75 billion in cash. Ardent will be entitled to distribute up to $75 million in excess cash to its existing shareholders, according to a news release.

Upon closing, Ventas plans to separate Ardent’s hospital operations from its real estate, selling the operations to an Ardent-owned entity. Ventas will have a 9.9% interest. The companies will enter into long-term triple-net leases.

Also on Monday, Ventas announced its board approved a plan to spin off the company’s post-acute/skilled nursing facility portfolio into an independent, publicly traded REIT (SpinCo).

Both transactions are expected to be completed during the second half of 2015.

UBS Investment Bank is serving as exclusive financial advisor to Ventas.

Ventas is a Chicago-based real estate investment trust for housing and health-care properties.

Ardent is owned by private equity funds managed by Welsh, Carson, Anderson & Stowe. Based in Nashville, the company owns and operates health systems in major U.S. markets.

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