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LTC Properties Inc. Message Board

  • hsm52b hsm52b Sep 19, 2000 12:25 PM Flag

    I called LTC and spoke to Amy and the

    situation is this. One of the nine banks are
    causing the problem with LTC. They been negotiating with
    the banks since January and resently this one bank
    has asked for 100% collateral. Presently the banks
    are unsecured. A new proposal has been sent out to
    the banks. LTC feels this bank is being unreasonable
    and has told the bank if this is not taken out they
    will sue the bank and may file chapter 11
    (reorgination). This would hurt the banks severely. I asked Amy
    if the dividends would still be paid if chapter 11
    was filed and she said yes. Finacially LTC is ok,
    this bank is asking for something that was not part of
    the original deal.

    If you have any question
    call the company yourself. Ask for investor relations.


    My personal thoughts are this LTC stock is a steal
    at these levels! I am a commercial realtor and
    understand the situation. LTC is finacially strong and there
    doing the right thing by not giving into this bank, it
    has hurt the stock short term but in the long run its
    the best the best thing for LTC. I look at this
    situation as a buying opportunity.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • If a syndicate of banks has one problem bank and
      they are so disposed the other banks can put this to
      an end right now and ante up for BAC's portion of
      the loan. Buy out BAC if they are not on board with
      BAC.

      I do not believe Amy's oversimplified answer for
      one minute and you should all consider that the other
      banks want what BAC wants and is simply letting BAC
      take the lead as often happens in the these
      syndication agreements.

      It may have started as BAC
      wanting securitization but perhaps what we do not know at
      this point is whether BAC in communicating to the
      other lenders have pointed out the reasons they want
      security. Oh, do you think the other banks are going to be
      subordinated to BAC or are they going to want
      equivalence?

      LTC is not going to file litigation to compel a
      bank to honor terms of a loan agreement that (if you
      read the fine print) is subject to change based upon
      the changing market environment. I have seen
      syndicated loans stopped up at the last minute for reasons
      less compelling than a demand for
      securitization.

      This Amy is in no position to determine if
      dividends would be paid in bankruptcy.

      If this AMY
      person is mentioning BK and the other banks are inclined
      to sign an agreement why would you have to go to BK
      to simply get rid of BAC? Or replace BAC if some
      other bank is willing to do the loan on an unsecured
      basis.... None of this makes any sense.

      The fact of
      the matter is that I was shocked to hear that the LTC
      LC refinance would go thru on an unsecured basis in
      the first place or that the syndicate would not
      demand a secured term loan and force paydown/payoff of
      the LC. What is happening now does not surprise me.
      The reason for this is that I am very certain that HR
      (which is a stronger REIT than LTC) is going to be
      forced into a term loan for a substantial portion of
      their LC when they have to renew next year.

      I
      don't have a dog in this fight but I would be wary of
      what this Amy person is passing along to shareholders
      who call. I think this is the corporate line and
      consistent with their press release but one bank could be
      taken out of this mix easily if the other banks wanted
      to.

      • 1 Reply to ferdiefor
      • i think amy is a secretary there; in any event
        she has no business making the statements she did;
        the first thing that will happen in chapt 11 is the
        dividend will be suspended; eventually, some legal begal
        trustee who could not make it as a lawyer will help both
        sides with a refinancing resolution that will probably
        make everyone wince; if andre really thought he was
        going to get an unsecured 195 mil in this interest
        environment then he really needs to consider becoming an
        occupant of one of his faciities; this stock will survive
        but will be under water for a long time to come; the
        banks will now be partners with andre and boy wont that
        be fun; somewhere down road ltc and all similar
        health care reits will do well; the prolems of the last
        two years are just begining to catch the politicians
        attention; it will only get worse and the screaming will be
        very loud indeed; adios

    • << They been negotiating with
      the banks
      since January and
      resently this one bank has
      asked
      for 100% collateral>>

      OHI had an
      unsecured facility, added $100mm of preferred equity, and
      their new facility still had to be
      secured.

      << [bankruptcy]
      would hurt the banks
      severely>>

      But not nearly as much as it would hurt
      LTC.

      <<I
      asked Amy if the dividends would
      still be
      paid if chapter 11 was filed
      and she said
      yes>>

      But they would probably have to be paid in LTC paper,
      not cash. See CMM.

      <<this bank is asking
      for
      something that was not part of the
      original
      deal>>

      The original deal expires on 10/02/00. New deal = new
      terms.

 
LTC
48.10+0.01(+0.02%)Jan 27 4:02 PMEST

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