News Details

CHICAGO--(BUSINESS WIRE)--Mar. 31, 2009-- Ventas, Inc. (NYSE: VTR) (“Ventas” or the “Company”) said today that it has extended and amended its unsecured revolving credit facilities (the “Line of Credit”) until April 26, 2012.

“Extending our Line of Credit until 2012 and increasing our current borrowing capacity continue our strategy of proactively managing our balance sheet to build additional strength and liquidity,” Ventas Chairman, President and Chief Executive Officer Debra A. Cafaro said. “We appreciate the strong support our bank group has given Ventas under very challenging market conditions. Ventas is well positioned to access multiple debt markets in 2009, and we intend to execute additional attractive debt transactions throughout the year,” Cafaro added.

The Line of Credit has two portions totaling $867 million of borrowing capacity, an increase over the prior capacity of $850 million. The first portion of the Line of Credit, maturing April 26, 2012 (the “2012 Maturity”), contains $590 million of borrowing capacity and is currently priced at LIBOR plus 280 basis points. The second portion of the Line of Credit, which matures on April 26, 2010 (the “2010 Maturity”), has $277 million of borrowing capacity and remains priced at LIBOR plus 75 basis points. The Line of Credit retains a 20 basis point annual facility fee. Existing lenders whose commitments mature in 2010 have the ability to extend the maturity date of those commitments to 2012.

Banc of America Securities LLC and Calyon New York Branch were the joint lead arrangers for the Line of Credit. Bank of America, N.A., Bank of Montreal, Calyon New York Branch, Citicorp North America, Inc., KeyBank, National Association and UBS Securities LLC participated in the Line of Credit in various agent capacities.

UPDATE ON VENTAS LIQUIDITY

As of March 31, 2009, the Company has $153 million in net borrowings outstanding under its Line of Credit, consisting of $212 million in borrowings offset by $59 million in cash balances and liquid investments.

As of the end of the first quarter 2009, the Company has only $76 million in 2009 debt maturities. Additional detail on the Company’s debt maturities can be found in an attachment to this Press Release.

Ventas, Inc. is a leading healthcare real estate investment trust. Its diverse portfolio of properties located in 43 states and two Canadian provinces includes seniors housing communities, skilled nursing facilities, hospitals, medical office buildings and other properties. More information about Ventas can be found on its website at www.ventasreit.com.

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements regarding the Company’s or its tenants’, operators’, managers’ or borrowers’ expected future financial position, results of operations, cash flows, funds from operations, dividends and dividend plans, financing plans, business strategy, budgets, projected costs, capital expenditures, competitive positions, acquisitions, investment opportunities, merger integration, growth opportunities, dispositions, expected lease income, continued qualification as a real estate investment trust (“REIT”), plans and objectives of management for future operations and statements that include words such as “anticipate,” “if,” “believe,” “plan,” “estimate,” “expect,” “intend,” “may,” “could,” “should,” “will” and other similar expressions are forward-looking statements. Such forward-looking statements are inherently uncertain, and security holders must recognize that actual results may differ from the Company’s expectations. The Company does not undertake a duty to update such forward-looking statements, which speak only as of the date on which they are made.

The Company’s actual future results and trends may differ materially depending on a variety of factors discussed in the Company’s filings with the Securities and Exchange Commission. These factors include without limitation: (a) the ability and willingness of the Company’s operators, tenants, borrowers, managers and other third parties to meet and/or perform their obligations under their respective contractual arrangements with the Company, including, in some cases, their obligations to indemnify, defend and hold harmless the Company from and against various claims, litigation and liabilities; (b) the ability of the Company’s operators, tenants, borrowers and managers to maintain the financial strength and liquidity necessary to satisfy their respective obligations and liabilities to third parties, including without limitation obligations under their existing credit facilities and other indebtedness; (c) the Company’s success in implementing its business strategy and the Company’s ability to identify, underwrite, finance, consummate and integrate diversifying acquisitions or investments, including those in different asset types and outside the United States; (d) the nature and extent of future competition; (e) the extent of future or pending healthcare reform and regulation, including cost containment measures and changes in reimbursement policies, procedures and rates; (f) increases in the Company’s cost of borrowing as a result of changes in interest rates and other factors; (g) the ability of the Company’s operators and managers, as applicable, to deliver high quality services, to attract and retain qualified personnel and to attract residents and patients; (h) the results of litigation affecting the Company; (i) changes in general economic conditions and/or economic conditions in the markets in which the Company may, from time to time, compete, and the effect of those changes on the Company’s revenues and its ability to access the capital markets or other sources of funds; (j) the Company’s ability to pay down, refinance, restructure and/or extend its indebtedness as it becomes due; (k) the Company’s ability and willingness to maintain its qualification as a REIT due to economic, market, legal, tax or other considerations; (l) final determination of the Company’s taxable net income for the year ended December 31, 2008 and for the year ending December 31, 2009; (m) the ability and willingness of the Company’s tenants to renew their leases with the Company upon expiration of the leases and the Company’s ability to reposition its properties on the same or better terms in the event such leases expire and are not renewed by the Company’s tenants or in the event the Company exercises its right to replace an existing tenant upon default; (n) risks associated with the Company’s senior living operating portfolio, such as factors causing volatility in the Company’s operating income and earnings generated by its properties, including without limitation national and regional economic conditions, costs of materials, energy, labor and services, employee benefit costs, insurance costs and professional and general liability claims, and the timely delivery of accurate property-level financial results for those properties; (o) the movement of U.S. and Canadian exchange rates; (p) year-over-year changes in the Consumer Price Index and the effect of those changes on the rent escalators, including the rent escalator for Master Lease 2 with Kindred, and the Company’s earnings; (q) the Company’s ability and the ability of its operators, tenants, borrowers and managers to obtain and maintain adequate liability and other insurance from reputable and financially stable providers; (r) the impact of increased operating costs and uninsured professional liability claims on the liquidity, financial condition and results of operations of the Company’s operators, tenants, borrowers and managers and the ability of the Company’s operators, tenants, borrowers and managers to accurately estimate the magnitude of those claims; (s) the ability and willingness of the lenders under the Company’s unsecured revolving credit facilities to fund, in whole or in part, borrowing requests made by the Company from time to time; (t) the impact of market or issuer events on the liquidity or value of the Company’s investments in marketable securities; and (u) the impact of any financial, accounting, legal or regulatory issues that may affect the Company’s major tenants, operators or managers. Many of these factors are beyond the control of the Company and its management.

As of March 31, 2009: Scheduled Maturities of Borrowing Arrangements, Excluding Normal Monthly Principal Amortization, Net of Cash and Liquid Investments*

Source: Ventas, Inc.

Ventas, Inc.
David J. Smith
1-877-4VENTAS