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CapitalSource Provides $172 Million to Formation Capital and Longwing Real Estate Ventures, LLC, to Acquire Laurel Health Care’s 26 Long-term Care Facilities and Pharmacy
Chevy Chase, MD (January XX, 2006) — 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 Longwing Real Estate Ventures, a member of the Dubai Investment Group, 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.
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.
Information About Laurel Health Care Management Laurel Health Care Management Company and all of its consolidated subsidiaries (collectively referred to as “Laurel” or the “Company”) is a leading regional provider of long-term care, subacute care, rehabilitation therapy, assisted living care, institutional pharmacy and other specialty medical services. Headquartered in the Columbus, Ohio area, the Company provides its services through three regional operating networks managing facilities located in secondary markets in Michigan, Ohio, North Carolina, Virginia and Indiana. Laurel currently operates 29 long-term care facilities (24 skilled nursing facilities, 4 stand- alone assisted living facilities and one independent living facility) comprising a total of 2,856 beds. Laurel also operates an institutional pharmacy that services the long-term care industry.
Founded in 1992, the Company has been able to generate rapid and consistent growth in revenue and profits. The Company has been profitable since inception, and from 1994 through 2004, has generated impressive compound annual growth rates in revenue, EBITDAR and EBITDA.
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