8-K: Current report filing
Published on June 14, 2010
Exhibit 99.2
Omega Pro Forma Financial Statements
Unaudited Pro Forma Balance Sheet
CapitalSource Transaction
| As of December 31, 2009 | ||||||||||||||||||||||||||||||
|
12/31/2009
Historical
Balance Sheet
|
Adjustments for
Capital Market
Transactions
|
Company Pro
Forma after
Bond Offering -
As Adjusted
|
Closing 2
Acquisition
HUD Properties
Historical
|
Company Pro
Forma after
Closing 1
Acquisition
|
Closing 2
Acquisition
Properties
Historical
|
Company Pro
Forma after
Closing 2 & 3
Acquisition
|
||||||||||||||||||||||||
| a | b | f | m | |||||||||||||||||||||||||||
|
ASSETS
|
||||||||||||||||||||||||||||||
|
Real estate properties
|
||||||||||||||||||||||||||||||
|
Land and buildings at cost
|
$ | 1,669,843 | $ | - | $ | 1,669,843 | $ | 281,131 | g | $ | 1,950,974 | $ | 320,211 | n | $ | 2,271,185 | ||||||||||||||
|
Less accumulated depreciation
|
(296,441 | ) | - | (296,441 | ) | - | (296,441 | ) | - | (296,441 | ) | |||||||||||||||||||
|
Real estate properties - net
|
1,373,402 | - | 1,373,402 | 281,131 | 1,654,533 | 320,211 | 1,974,744 | |||||||||||||||||||||||
|
Mortgage notes receivable - net
|
100,223 | - | 100,223 | - | 100,223 | - | 100,223 | |||||||||||||||||||||||
| 1,473,625 | - | 1,473,625 | 281,131 | 1,754,756 | 320,211 | 2,074,967 | ||||||||||||||||||||||||
|
Other investments - net
|
32,800 | - | 32,800 | - | 32,800 | - | 32,800 | |||||||||||||||||||||||
| 1,506,425 | - | 1,506,425 | 281,131 | 1,787,556 | 320,211 | 2,107,767 | ||||||||||||||||||||||||
|
Assets held for sale - net
|
877 | - | 877 | - | 877 | - | 877 | |||||||||||||||||||||||
|
Total investments
|
1,507,302 | - | 1,507,302 | 281,131 | 1,788,433 | 320,211 | 2,108,644 | |||||||||||||||||||||||
|
Cash and cash equivalents
|
2,170 | 108,039 | 110,209 | (68,034 | ) | h | 42,175 | - | 42,175 | |||||||||||||||||||||
|
Restricted cash
|
9,486 | - | 9,486 | 2,170 | i | 11,656 | 2,883 | o | 14,539 | |||||||||||||||||||||
|
Accounts receivable - net
|
81,558 | - | 81,558 | - | 81,558 | - | 81,558 | |||||||||||||||||||||||
|
Other assets
|
50,778 | 4,946 | c | 55,724 | - | 55,724 | (25,000 | ) | p | 30,724 | ||||||||||||||||||||
|
Operating assets for owned properties
|
3,739 | - | 3,739 | - | 3,739 | - | 3,739 | |||||||||||||||||||||||
|
Total assets
|
$ | 1,655,033 | $ | 112,985 | $ | 1,768,018 | $ | 215,267 | $ | 1,983,285 | $ | 298,094 | $ | 2,281,379 | ||||||||||||||||
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|||||||||||||||||||||||||||||
|
Revolving line of credit
|
$ | 94,100 | $ | (94,100 | ) | - | $ | - | $ | - | $ | 296,211 | q | $ | 296,211 | |||||||||||||||
|
Secured Borrowings
|
159,354 | (59,354 | ) | 100,000 | 214,147 | j | 314,147 | - | 314,147 | |||||||||||||||||||||
|
Unsecured borrowings
|
485,000 | 200,000 | 685,000 | - | 685,000 | - | 685,000 | |||||||||||||||||||||||
|
Premium/Discount on unsecured borrowings (net)
|
(305 | ) | (3,444 | ) | d | (3,749 | ) | - | (3,749 | ) | - | (3,749 | ) | |||||||||||||||||
|
Accrued expenses and other liabilities
|
49,895 | - | 49,895 | 2,170 | k | 52,065 | 2,883 | r | 54,948 | |||||||||||||||||||||
|
Operating liabilities for owned properties
|
1,762 | - | 1,762 | - | 1,762 | - | 1,762 | |||||||||||||||||||||||
|
Total liabilities
|
789,806 | 43,102 | 832,908 | 216,317 | 1,049,225 | 299,094 | 1,348,319 | |||||||||||||||||||||||
|
Stockholders' equity:
|
||||||||||||||||||||||||||||||
|
Preferred stock
|
108,488 | - | 108,488 | - | 108,488 | - | 108,488 | |||||||||||||||||||||||
|
Common stock
|
8,827 | 379 | 9,206 | - | 9,206 | - | 9,206 | |||||||||||||||||||||||
|
Additional paid-in capital
|
1,157,931 | 73,347 | 1,231,278 | - | 1,231,278 | - | 1,231,278 | |||||||||||||||||||||||
|
Cumulative net earnings
|
522,388 | (3,843 | ) | e | 518,545 | (1,050 | ) | l | 517,495 | (1,000 | ) | s | 516,495 | |||||||||||||||||
|
Cumulative dividends paid
|
(932,407 | ) | - | (932,407 | ) | - | (932,407 | ) | - | (932,407 | ) | |||||||||||||||||||
|
Total stockholders' equity
|
865,227 | 69,883 | 935,110 | (1,050 | ) | 934,060 | (1,000 | ) | 933,060 | |||||||||||||||||||||
|
Total liabilities and stockholders' equity
|
$ | 1,655,033 | $ | 112,985 | $ | 1,768,018 | $ | 215,267 | $ | 1,983,285 | $ | 298,094 | $ | 2,281,379 | ||||||||||||||||
|
Omega Pro Forma Financial Statements
|
|
Unaudited Pro Forma Statement of Operations
|
|
CapitalSource Transaction
|
|
For the three-months ended March 31, 2010
|
||||||||||||||||||||||||||||||||||||||
|
Omega
Historical Statement of
Operations |
Adjustments for
Capital Market Transactions |
Company Pro Forma after Closing 1 Acquisition & Capital Market Transactions |
Closing 2
Acquisition Properties Historical |
Closing 2
Acquisition Properties Pro Forma Adjustments |
Company Pro
Forma after Closing 1 & 2 Acquisition |
Closing 3
Acquisition Properties Historical |
Closing 3
Acquisition Properties Pro Forma Adjustments |
Company Pro
Forma after Closing All CapitalSource Acquisitions |
||||||||||||||||||||||||||||||
| a | b | c | d | |||||||||||||||||||||||||||||||||||
|
Revenues
|
||||||||||||||||||||||||||||||||||||||
|
Rental income
|
$ | 47,209 | $ | - | $ | 47,209 | $ | 7,203 | $ | 529 | e | $ | 54,941 | $ | 8,503 | $ | (65 | ) | e | $ | 63,379 | |||||||||||||||||
|
Mortgage interest income
|
2,614 | - | 2,614 | - | - | 2,614 | - | - | 2,614 | |||||||||||||||||||||||||||||
|
Other investment income - net
|
746 | - | 746 | 29 | (29 | ) | f | 746 | 23 | (23 | ) | f | 746 | |||||||||||||||||||||||||
|
Miscellaneous
|
3,729 | - | 3,729 | - | - | 3,729 | - | - | 3,729 | |||||||||||||||||||||||||||||
|
Nursing home revenues of owned and operated assets
|
4,380 | - | 4,380 | - | - | 4,380 | - | - | 4,380 | |||||||||||||||||||||||||||||
|
Total operating revenues
|
58,678 | - | 58,678 | 7,232 | 500 | 66,410 | 8,526 | (88 | ) | 74,848 | ||||||||||||||||||||||||||||
|
Expenses
|
||||||||||||||||||||||||||||||||||||||
|
Depreciation and amortization
|
14,687 | - | 14,687 | - | 3,059 | g | 17,746 | 2,540 | 1,059 | g | 21,345 | |||||||||||||||||||||||||||
|
General and administrative
|
3,710 | - | 3,710 | 1,166 | (866 | ) | h | 4,010 | 1,106 | (1,106 | ) | h | 4,010 | |||||||||||||||||||||||||
|
Acquisition related costs
|
220 | - | 220 | - | - | 220 | - | - | 220 | |||||||||||||||||||||||||||||
|
Provisions for impairment on real estate properties
|
- | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||
|
Provisions for uncollectible mortgages, notes and accounts receivable
|
- | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||
|
Nursing home revenues and expenses of owned and operated assets
|
4,572 | - | 4,572 | - | - | 4,572 | - | - | 4,572 | |||||||||||||||||||||||||||||
|
Total operating expenses
|
23,189 | - | 23,189 | 1,166 | 2,193 | 26,548 | 3,646 | (47 | ) | 30,147 | ||||||||||||||||||||||||||||
|
Income before other income and expense
|
35,489 | - | 35,489 | 6,066 | (1,693 | ) | 39,862 | 4,880 | (41 | ) | 44,701 | |||||||||||||||||||||||||||
|
Other income (expense):
|
||||||||||||||||||||||||||||||||||||||
|
Interest and other investment income
|
15 | - | 15 | - | - | 15 | - | - | 15 | |||||||||||||||||||||||||||||
|
Interest
|
(13,575 | ) | (664 | ) | (14,239 | ) | (2,926 | ) | 122 | i | (17,043 | ) | (1,587 | ) | (1,375 | ) | i | (20,005 | ) | |||||||||||||||||||
|
Interest - amortization of deferred financing costs
|
(978 | ) | 91 | (887 | ) | - | - | (887 | ) | - | - | (887 | ) | |||||||||||||||||||||||||
|
Interest - refinancing costs
|
- | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||
|
Litigation settlements
|
- | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||
|
Total other (expense) income
|
(14,538 | ) | (573 | ) | (15,111 | ) | (2,926 | ) | 122 | (17,915 | ) | (1,587 | ) | (1,375 | ) | (20,877 | ) | |||||||||||||||||||||
|
Income before gain on assets sold
|
20,951 | (573 | ) | 20,378 | 3,140 | (1,571 | ) | 21,947 | 3,293 | (1,416 | ) | 23,824 | ||||||||||||||||||||||||||
|
Gain (loss) on assets sold - net
|
- | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||
|
Income from continuing operations before income taxes
|
20,951 | (573 | ) | 20,378 | 3,140 | (1,571 | ) | 21,947 | 3,293 | (1,416 | ) | 23,824 | ||||||||||||||||||||||||||
|
Income taxes
|
- | - | - | - | - | |||||||||||||||||||||||||||||||||
|
Income from continuing operations
|
20,951 | (573 | ) | 20,378 | 3,140 | (1,571 | ) | 21,947 | 3,293 | (1,416 | ) | 23,824 | ||||||||||||||||||||||||||
|
Discontinued operations
|
- | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||
|
Net income
|
20,951 | (573 | ) | 20,378 | 3,140 | (1,571 | ) | 21,947 | 3,293 | (1,416 | ) | 23,824 | ||||||||||||||||||||||||||
|
Preferred stock dividends
|
(2,271 | ) | - | (2,271 | ) | - | - | (2,271 | ) | - | - | (2,271 | ) | |||||||||||||||||||||||||
|
Series C preferred stock conversion charges
|
- | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||
|
Net income available to common
|
$ | 18,680 | $ | (573 | ) | $ | 18,107 | $ | 3,140 | $ | (1,571 | ) | $ | 19,676 | $ | 3,293 | $ | (1,416 | ) | $ | 21,553 | |||||||||||||||||
|
Income per common share:
|
||||||||||||||||||||||||||||||||||||||
|
Basic:
|
||||||||||||||||||||||||||||||||||||||
|
Income from continuing operations
|
$ | 0.21 | $ | 0.20 | $ | 0.22 | $ | 0.24 | ||||||||||||||||||||||||||||||
|
Net income
|
$ | 0.21 | $ | 0.20 | $ | 0.22 | $ | 0.24 | ||||||||||||||||||||||||||||||
|
Diluted:
|
||||||||||||||||||||||||||||||||||||||
|
Income from continuing operations
|
$ | 0.21 | $ | 0.20 | $ | 0.22 | $ | 0.24 | ||||||||||||||||||||||||||||||
|
Net income
|
$ | 0.21 | $ | 0.20 | $ | 0.22 | $ | 0.24 | ||||||||||||||||||||||||||||||
|
Dividends declared and paid per common share
|
$ | 0.32 | $ | 0.32 | $ | 0.32 | $ | 0.32 | ||||||||||||||||||||||||||||||
|
Weighted-average shares outstanding, basic
|
88,840 | - | 88,840 | - | - | 88,840 | - | - | 88,840 | |||||||||||||||||||||||||||||
|
Weighted-average shares outstanding, diluted
|
88,961 | - | 88,961 | - | - | 88,961 | - | - | 88,961 | |||||||||||||||||||||||||||||
|
Omega Pro Forma Financial Statements
|
||||||
|
Unaudited Pro Forma Balance Sheet Adjustments
|
||||||
|
CapitalSource Transaction
|
||||||
|
Balance Sheet Pro Forma Adjustments:
|
|
|
a
|
Reflects the Company’s historical balance sheet for the period ended December 31, 2009.
|
|
b
|
Reflects capital market activity in 2010 in connection with the CapitalSource transactions. In February 2010, the Company issued $200 million of its 7.5% 10 year senior notes at a discount and used the net proceeds to (i) repay amounts outstanding under its 2009 $200 million revolving credit facility and (ii) $59.4 million of secured borrowings assumed in connection with the December 22, 2009 acquisition of 40 facilities from CapitalSource (Closing 1). The discount on the $200 million 7.5% 10 year senior notes was approximately $3.4 million. In addition in 2010, the Company issued approximately 3.8 million shares of common stock under its Equity Shelf Program for net proceeds of approximately $73.8 million. In 2010, the Company incurred deferred financing costs associated with entering into a new $320 million revolving credit facility.
|
|
c
|
Reflects approximately: (i) $4.3 million in debt issuance costs associated with the $200 million senior notes offering completed in February 2010 and $4.5 million in debt issuance costs associated with the new $320 million revolving credit facility completed in April 2010, and (ii) the write-off of December 31, 2009 unamortized debt issuance costs of $3.8 million associated with the 2009 $200 million revolving credit facility.
|
|
d
|
Reflects the discount on the issuance of the $200 million 7.5% 10 year senior notes issued in February 2010.
|
|
e
|
Reflects the write-off of December 31, 2009 unamortized debt issuance costs associated with the 2009 $200 million credit facility.
|
|
f
|
The aggregate consideration for the entities owning an additional 40 facilities to be acquired from CapitalSource (Closing 2) is estimated to be approximately $270.4 million, to consist of the following:
|
|
Preliminary estimated fair value of land, building and FF&E
|
$
|
281.1
|
|||
|
Estimated market adjustment for assumed HUD debt
|
(10.7
|
)
|
|||
|
Total Consideration paid at closing
|
$
|
270.4
|
|||
|
Funding of Consideration:
|
|||||
|
Assumption of 9.0% subordinated debt
|
$
|
20.0
|
|||
|
Assumption of 6.41% HUD debt
|
53.8
|
||||
|
Assumption of 4.85% HUD debt
|
129.6
|
||||
|
Funds drawn from the Company’s revolving credit facility
|
67.0
|
||||
|
Total Funding of consideration at Closing 2
|
$
|
270.4
|
|
g
|
Reflects the pending acquisition of entities owning an additional 40 facilities from CapitalSource at Closing 2, which is expected to be completed during the second quarter of 2010. The aggregate consideration for the additional 40 facilities is estimated to be $270.4 million. The Company intends to account for the acquisition in accordance with guidance for business combinations and is currently in the process of analyzing the fair value of the acquired properties and the related in-place leases. The Company estimates that the value of the above and below market lease intangibles approximates one another and as a result no value has been assigned to in-place leases and no adjustment has been reflected for the amortization of the acquired lease intangibles. The purchase price allocations are preliminary and subject to change. Our preliminary allocation of the purchase price to real estate assets is as follows:
|
|
Land
|
$ |
34.3
|
|||
|
Building and FF&E
|
$ |
246.8
|
|||
|
Total
|
$ |
281.1
|
|||
|
h
|
Reflects cash used to fund the acquisition of the 40 facilities in Closing 2 and estimated acquisition related costs.
|
|
i
|
Reflects cash expected to be received from CapitalSource that relates to liquidity deposits held for leases.
|
|
j
|
Reflects debt that the Company expects to assume as part of Closing 2. The $203.4 million in assumed debt includes: $20.0 million in 9% subordinated debt that matures in December 2021, $53.8 million in Housing and Urban Development (“HUD”) Mortgage debt at a weighted average of 6.41% that matures between January 2036 and May 2040, and $129.6 million of new HUD debt at 4.85% that matures in 2039. The Company intends to account for the acquisition in accordance with guidance for business combinations and is currently in the process of analyzing the fair value of the assumed debt. The Company estimates that the current fair market value of the $53.8 million HUD debt at current market rates is approximately $64.5 million. No other adjustments have been made regarding fair market value adjustments for any of the other assumed debt as the Company has estimated that the carrying amount of such debt approximates fair value based on current borrowing rates of similar instruments. The purchase price allocations are preliminary and subject to change.
|
|
k
|
Reflects the liabilities associated with liquidity deposits noted above in footnote (i).
|
|
l
|
Reflects the Company’s estimate of acquisition related costs associated with Closing 2. The Company assumed that the costs were paid with available cash.
|
|
m
|
The aggregate consideration for the entities owning 63 facilities acquired from CapitalSource upon the exercise by the Company’s of the purchase option at Closing 3 on June 9, 2010 is estimated to be approximately $320.2 million, consisting of the following:
|
|
Preliminary estimated fair value of land, building and FF&E
|
$ |
320.2
|
|||
|
Payment of deposit for purchase option paid during Closing 1
|
(25.0
|
) | |||
|
Total Consideration paid at closing
|
$ |
295.2
|
The Company plans to use funds from its line of credit to fund the $295.2 million in consideration due at closing.
|
n
|
Reflects the acquisition of entities owning an additional 63 facilities from CapitalSource at Closing 3, which occured on June 9, 2010. The aggregate consideration for the additional 63 facilities is estimated to be $320.2 million. The Company intends to account for the acquisition in accordance with guidance for business combinations and is currently in the process of analyzing the fair value of the acquired properties and the related in-place leases. The Company estimates that the value of the above and below market lease intangibles approximates one another and as a result no value has been assigned to in-place leases and no adjustment has been reflected for the amortization of the acquired lease intangibles. The purchase price allocations are preliminary and subject to change. Our preliminary allocation of the purchase price to real estate assets is as follows:
|
|
Land
|
$ |
33.1
|
|||
|
Building and FF&E
|
287.1
|
||||
|
Total
|
$ |
320.2
|
|||
|
o
|
Reflects cash expected to be received from CapitalSource that relates to liquidity deposits held for leases.
|
|
p
|
Reflects the exercise of the Company’s option to purchase the additional 63 facilities at Closing 3. The purchase option is applied to the total consideration for Closing 3 and is allocated to acquired assets and assumed liabilities.
|
|
q
|
Reflects funds used from the new 2010 $320 million revolving credit facility to fund the acquisition of 63 facilities from CapitalSource at Closing 3.
|
|
r
|
Reflects the liabilities associated with liquidity deposits noted above in footnote (o).
|
|
s
|
Reflects the Company’s estimate of acquisition related costs associated with Closing 3. The Company assumed that the costs were paid with funds drawn from the new 2010 $320 million revolving credit facility.
|
|
Omega Pro Forma Financial Statements
|
||||||
|
Unaudited Pro Forma Statement of Operation Adjustments
|
||||||
|
CapitalSource Transaction
|
||||||
|
Statement of Operations Pro Forma Adjustments:
|
|
|
a
|
Reflects the Company’s historical statement of operations for the three months ended March 31, 2010.
|
|
b
|
Reflects the impact of the issuance of $200 million in senior debt during the first quarter of 2010 part of which was used to (i) repay $59.4 million of 6.8% CapitalSource mortgage debt that was assumed in December 2009, and (ii) repay the outstanding revolving credit facility. In addition, the adjustment reflects the impact of replacing the revolving credit facility, including the impact of amortization of deferred finance costs.
|
|
c
|
Reflects the historical financial results of operations for an additional 40 facilities to be acquired from CapitalSource Inc. (Closing 2), which the Company expects to acquire during the second quarter of 2010, for the three months ended March 31, 2010. The aggregate consideration for the additional 40 facilities to be acquired at Closing 2 is estimated to be $270 million. The Company expects to assume approximately $203 million in debt as a result of Closing 2 from CapitalSource. The Company intends to account for the acquisition in accordance with guidance for business combinations and is currently in the process of analyzing the fair value of the acquired properties, the related in-place leases and assumed debt. The purchase price allocations are preliminary and subject to change.
|
|
d
|
Reflects the historical financial results of operations for 63 facilities acquired from CapitalSource Inc. on June 9, 2010 (Closing 3) for the three-months ended March 31, 2010. The aggregate consideration for the additional 63 facilities to be acquired at Closing 3 is estimated to be $320 million. The Company intends to account for the acquisition in accordance with guidance for business combinations and is currently in the process of analyzing the fair value of the acquired properties, the related in-place leases and assumed debt. The purchase price allocations are preliminary and subject to change.
|
|
e
|
Reflects increased straight-line rents as if the lease start dates for Closing 2 and Closing 3 facilities were January 1, 2009.
|
|
Year-end
December 31, 2009 |
|||||
|
Closing 2, 40 Facilities expected to be acquired during the second quarter of 2010:
|
|||||
|
Rental income recorded by CapitalSource
|
$ | 7,203.0 | |||
|
Revenue income assuming the acquisition occurred on January 1, 2010
|
7,732.0 | ||||
|
Pro Forma adjustment to rental income
|
$ | 529.0 | |||
|
Closing 3, 63 Facilities acquired on June 9, 2010:
|
|||||
|
Rental income recorded by CapitalSource
|
$ | 8,503.0 | |||
|
Revenue income assuming the acquisition occurred on January 1, 2010
|
8,438.0 | ||||
|
Pro Forma adjustment to rental income
|
$ | (65.0 | ) | ||
|
f
|
Reflects an adjustment to eliminate the other investment income because we do not intend to purchase other assets from CapitalSource.
|
|
g
|
Reflects an adjustment to depreciation and amortization as if Closing 2 and Closing 3 facilities were purchased on January 1, 2010. The estimate is based on our preliminary estimate of the purchase price allocation for the 40 facilities expected to be acquired at Closing 2 during the second quarter of 2010 and 63 additional facilities that were acquired on June 9, 2010 (Closing 3). The aggregate consideration for the 40 facilities that we expect to acquire as part of Closing 2 is approximately $270 million and the aggregate consideration for the 63 facilities that we acquired on June 9, 2010 was approximately $320 million, including the $25 million in purchase option deposits that was paid at Closing 1 related to Closing 3 facilities. The Company intends to account for both of these acquisitions in accordance with guidance for business combinations and is currently in the process of analyzing the fair value of these facilities and the related in-place leases. The purchase price allocations are preliminary and subject to change. For the first quarter of 2010, CapitalSource recorded no historical depreciation associated with the Closing 2 facilities due to their classification as held-for-sale.
|
|
Year-end
December 31, 2009 |
|||||
|
Closing 2, 40 Facilities expected to be acquired during the second quarter of 2010:
|
|||||
|
Depreciation & amortization recorded by CapitalSource
|
$ | - | |||
|
Depreciation & amortization assuming the acquisition occurred on January 1, 2010
|
3,059.0 | ||||
|
Pro Forma adjustment to depreciation & amortization
|
$ | 3,059.0 | |||
|
Closing 3, 63 Facilities acquired on June 9, 2010:
|
|||||
|
Depreciation & amortization recorded by CapitalSource
|
$ | 2,540.0 | |||
|
Depreciation & amortization assuming the acquisition occurred on January 1, 2010
|
3,599.0 | ||||
|
Pro Forma adjustment to depreciation & amortization
|
$ | 1,059.0 | |||
|
h
|
Reflects the estimated reduction in general and administrative costs relating to allocations of corporate costs of CapitalSource that are not recurring direct costs of the Closing 2 and Closing 3 facilities, as applicable.
|
|
i
|
Represents interest expense on the assumed debt as part of Closing 2 and funds drawn on the Company’s new 2010 $320 million revolving credit facility in connection with Closing 3.
|
|
Year-end
December 31, 2009 |
|||||
|
Closing 2, 40 Facilities expected to be acquired during the second quarter of 2010:
|
|||||
|
Interest Expense Recorded by CapitalSource
|
$ | (2,926.0 | ) | ||
|
Interest expense assuming the acquisition occurred on January 1, 2010
|
(2,804.0 | ) | |||
|
Pro Forma adjustment to interest expense
|
$ | 122.0 | |||
|
Closing 3, 63 Facilities acquired on June 9, 2010:
|
|||||
|
Interest Expense Recorded by CapitalSource
|
$ | (1,587.0 | ) | ||
|
Interest expense assuming the acquisition occurred on January 1, 2010
|
(2,962.0 | ) | |||
|
Pro Forma adjustment to interest expense
|
$ | (1,375.0 | ) | ||