Ventas Inc. (VTR) recently announced that it has priced a public offering of $600 million aggregate principal amount of 4.00% Senior Notes maturing 2019 at 99.489% of principal amount. The company’s operating partner, Ventas Realty, Limited Partnership, and one of its wholly owned subsidiary, Ventas Capital Corporation are primarily responsible for the senior notes offering .The sale of the notes is expected to close on April 17, 2012.
The net proceeds from the offering will be used to repay its outstanding debt under its unsecured revolving credit facility for working capital and other general corporate purposes.
This public offering will enable the company to attain financial flexibility and position it favorably to pursue investment opportunities and acquisitions, which go a long way in enhancing top-line growth.
As of December 31, 2011, the company had $455.6 million in borrowings outstanding under its unsecured revolving credit facility, $500 million in borrowings outstanding under its new unsecured term loan facility, and $45.8 million in cash and cash equivalents.
Ventas is one of the top performing healthcare REITs in the U.S., with one of the largest and most diversified portfolios in the healthcare sector with exposure to all types of facilities. The product diversity of the company allows it to capitalize on opportunities in different markets based on individual market dynamics, and provides a competitive advantage over its peers.
Ventas currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We are also maintaining our long-term Outperform recommendation on the stock. One of its competitors, HCP Inc. (HCP) also holds a Zacks #3 Rank.
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VENTAS INC (VTR): Free Stock Analysis Report
