Ventas Enters Into New Management Agreement With Holiday Retirement
Holiday Lease Terminated and Ventas Receives
“We are pleased to realign our relationship with Holiday by entering into a new management agreement for our 26 independent living communities and terminating our Holiday Lease,” said
Terms of the transaction, which was effective as of
- Ventas has received a total of
$100 million consisting of$34 million in cash (the “Cash Payment”) and$66 million aggregate principal amount of secured Notes from the prior guarantor of the Holiday Lease (the “Guarantor”) and certain Holiday affiliates. The Notes mature in five years and bear interest at a blended rate of nine percent per annum. The Guarantor owns seven communities, one of which is unencumbered and six of which are encumbered by a$174 million mortgage loan.
- Under the new management agreement for the 26 Holiday Communities, Ventas will pay Holiday a management fee equal to five percent of gross revenues. The management agreement is terminable by Ventas without penalty upon thirty days’ notice.
The terminated Holiday Lease covered the Company’s 26 Holiday Communities, which contain 3,184 units. Holiday fully paid all rent due under the Holiday Lease from inception in 2013 through
In the second quarter of 2020, Ventas expects to recognize income reflecting receipt of the Cash Payment and the Notes, partially offset by a non-cash expense of
Advisors
Lazard is serving as financial advisor to Ventas and
About Ventas
The Company routinely announces material information to investors and the marketplace using press releases,
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements regarding the Company’s or its tenants’, operators’, borrowers’ or managers’ expected future financial condition, results of operations, cash flows, funds from operations, dividends and dividend plans, financing opportunities and plans, capital markets transactions, business strategy, budgets, projected costs, operating metrics, capital expenditures, competitive positions, acquisitions, investment opportunities, dispositions, merger or acquisition integration, growth opportunities, expected lease income, continued qualification as a real estate investment trust (“REIT”), plans and objectives of management for future operations and statements that include words such as “anticipate,” “if,” “believe,” “plan,” “estimate,” “expect,” “intend,” “may,” “could,” “should,” “will” and other similar expressions are forward-looking statements. These forward-looking statements are inherently uncertain, and actual results may differ from the Company’s expectations. The Company does not undertake a duty to update these forward-looking statements, which speak only as of the date on which they are made.
The Company’s actual future results and trends may differ materially from expectations depending on a variety of factors discussed in the Company’s filings with the
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