CHEVY CHASE, Md., Feb. 2 /PRNewswire-FirstCall/ -- CapitalSource Finance LLC , one of the leading commercial finance firms in the United States, has provided $172 million in loans to entities created by Formation Capital Health Care, LLC to acquire 26 long-term care facilities and an institutional pharmacy owned and operated by Laurel Health Care Management.
CapitalSource also will provide a $12.5 million revolving credit facility to Laurel's specially created entity, LHCC properties, to lease the 21 skilled nursing facilities, four assisted living facilities, one independent living facility and pharmacy.
During the last few years, Formation Capital and its partners have acquired more than $800 million in long-term care properties. The firm has received financing from CapitalSource on several of these transactions, including its acquisition of nursing homes formerly owned by Centennial HealthCare Corp.
"This was an extremely complicated transaction with a lot of moving pieces," said Steve Fishman, President and Co-Chairman of Formation Capital. "We knew from experience that we could count on CapitalSource to get us the necessary funding and quickly close the deal without any hiccups or delays."
"We appreciate the opportunity to work with industry leader Formation Capital in structuring this complex financing facility to benefit all parties," said James Pieczynski, Co-President of Healthcare and Specialty Finance for CapitalSource.
The transaction featured senior and mezzanine term loans for the senior housing facilities as well as an enterprise term loan and revolving credit facility for Laurel Health Care's institutional pharmacy. In addition, Formation Capital and its related entities made an approximately $30 million investment to acquire the portfolio, which totaled more than 2,800 beds/units in Indiana, Michigan, North Carolina and Virginia.
About CapitalSource
CapitalSource is a specialized commercial finance company offering asset- based, senior, cash flow and mezzanine financing to small and mid-sized borrowers through three focused lending businesses: Corporate Finance, Healthcare and Specialty Finance and Structured Finance. By offering a broad array of financial products, CapitalSource has issued more than $8.3 billion in loan commitments as of September 30, 2005. It is headquartered in Chevy Chase, MD, with a national network of offices in cities including Atlanta, Boston, Buffalo, Chicago, Dallas, Los Angeles, Nashville, New York, Philadelphia, San Francisco and St. Louis. CapitalSource has announced its intention to elect real estate investment trust (REIT) status for the year commencing January 1, 2006. For more information, visit http://www.capitalsource.com or call toll free at (866) 876-8723.
About Formation Capital
Headquartered in Alpharetta, GA, Formation Capital invests equity and provides lending services to the senior housing and care industry through various structures, including equity investments and sale-leasebacks. For more information, please visit http://www.formationcapital.com.
CapitalSource Finance LLCCONTACT: Paul Wardour of CapitalSource Finance LLC, +1-301-841-2745, fax:+1-301-841-2312, or pwardour@capitalsource.com
