CapitalSource to sell its interest in 143 nursing homes

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CapitalSource to sell its interest in 143 nursing homes
CapitalSource to sell its interest in 143 nursing homes

Commercial lending company CapitalSource said Tuesday that it will sell off its long-term care interests to Omega Healthcare Investors in a deal valued at roughly $860 million.

The sale covers a CapitalSource lease portfolio that includes 143 long-term care facilities. Under the deal, Omega Healthcare Investors, which already owns or holds mortgages for 254 skilled nursing and assisted living facilities, will assume $529 million in asset-related debt, and give CapitalSource $280 million cash and $51 million in OHI stock. The sale will be completed in three phases, with the first two expected to be complete by the end of the second quarter of 2010.

In other business news, shares of rehabilitation services provider RehabCare Group Inc. climbed to a four-year high Friday after the company priced 5.4 million shares at $24 each. That was more than $1 a share cheaper than Thursday's closing price. The move was intended to raise $129.6 million to help with the company's recently announced $570 million acquisition of Triumph Healthcare. Shares spiked to $26.64 Friday, a level not reached since 2005. They hit a new record of $27.28 on Monday.

Embattled Sunrise Senior Living Inc., meanwhile, announced a delay in its sale of 21 properties to Brookdale Senior Living Inc. The deal had been expected to be complete in November, but Sunrise said the closing date had been pushed back two weeks to the beginning of December. No reason was given for the delay.