Ventas, Inc.VTR announced that its operating partnership subsidiary, Ventas Realty Limited Partnership, has priced a $500-million public offering, bearing a rate of 4.125%. The pricing of these notes is expected to boost the Chicago, IL-based healthcare real estate investment trust's ("REIT") financial flexibility.
The notes, as obligation of the operating partnership subsidiary, are guaranteed by Ventas. Subject to certain customary closing conditions, the senior notes offering is expected to close on Jul 16, 2015.
Ventas intends to utilize the net proceeds generated from this public offering to meet working capital needs and other general corporate purposes which include funding of acquisitions and investment activities.
Ventas is mainly engaged in acquisition and ownership of seniors housing and healthcare properties, and leasing them to unaffiliated tenants or operating them through independent third-party managers.
Notably, last week, Ventas inked a deal with Equity Group Investments ("EGI"). Under the terms of the deal, majority of the hospital operations of Ardent Health Services ("AHS") will be owned by EGI; while Ventas will own 9.9% stake. Also, Nashville-based Ardent will hold significant ownership stake in the company (read more: Ventas Inks $475M Deal with Equity Group Investments ).
Ventas currently has a Zacks Rank #3 (Hold).
Investors interested in the REIT industry may consider stocks like Arbor Realty Trust Inc. ABR , Strategic Hotels & Resorts, Inc. BEE and CareTrust REIT, Inc. CTRE . While both Arbor Realty Trust and Strategic Hotels & Resorts sport a Zacks Rank #1 (Strong Buy), CareTrust REIT holds a Zacks Rank #2 (Buy).
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