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.
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.
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