CapitalSource nets $119M from HUD mortgage deal

AP News
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Posted: Dec 29, 2009 10:24 AM

Commercial lender CapitalSource Inc. on Tuesday said it received about $119 million in cash proceeds after closing mortgages backed by the Department of Housing and Urban Development.

The mortgaged facilities are among 40 that are slated for sale to Omega Healthcare Investors Inc. around April 1. It will be the second phase of a three-part sale of 103 long-term care facilities to Omega.

With the combined proceeds from the mortgages and the sale of 37 nursing homes to Omega that closed last week, CapitalSource has raised $347 million of the $495 million it has targeted by selling assets.

The lender has reduced its outstanding debt under its syndicated bank facility to $325 million.

In morning trading, CapitalSource shares added 16 cents, or 4.2 percent, to $3.93.