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LTC Properties Inc. Message Board

  • horneyranch horneyranch Sep 25, 2000 2:33 PM Flag

    looks like either a bad deal or bank

    ruptcy are new; too bad; this co should never
    have gotten ino this sorry shape; really a management
    problem; nhi seems to be following suit; if they know the
    banks are not going to do business with them, why didnt
    they start looking elsewhere a long time ago; piss
    poor management

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    • << I'm not convinced the banks see
      LTC-specific problems. >>

      I don't think you can
      assume that BoA has any special insight because if they
      did then they wouldn't have made the original

      I assume that BoA wants to shrink the loan balance
      through mandatory paydowns. MT sold $1 bn of assets at
      significant discounts in order to pay down its revolver; BoA
      would like to see the same thing here. MT also realized
      losses on those sales making it unnecessary to pay any
      common stock dividend.

    • "I'm not convinced the banks see any LTC-specific
      problems. LTC is just in the wrong business. "

      question that LTC is probably in the wrong industry right
      now for the banks, but I think that their might be
      one LTC specific problem in the banks' views. That
      would be all the stock repurchasing that LTC did
      earlier this year. From the conference call after the
      dividend cut, I thought I remembered them saying that the
      dividend reduction was to prepare themselves for
      refinancing, but I think most of the saved cash went into
      repurchasing stock. At least for the first quarter of the
      calendar year. I wouldn't imagine that the lenders were
      too pleased about that. I will have to admit though
      that at the time I too thought it was a good idea.

    • No question BofA is simply the lead bank and is
      representing the others. If the other banks didn't agree with
      BofA they'd just do the deal on their own.

      not convinced the banks see any LTC-specific
      problems. LTC is just in the wrong business. Banks lost
      billions in nursing homes recently. The entire sector is
      toxic to them. "Lend to a nursing home, destroy your
      career" is every lending officer's motto right now.

    • You ask the $64M question. Why aren't these
      troubled REIT management's looking far enough ahead to see
      these financing or refinancing issues. Its not as
      though the healthcare REITs aren't aware of their
      refinancing prospects after this governmt created MediCare

      I have postulated that being a REIT is too much
      of a trap for a troubled REIT. LTC, OHI, and NHI
      should have de-REITed a year ago. Yes those stocks would
      have been hammered but they would have been able to
      transform themselves into a better credit risk immediately
      because all the dividend income (net of applicable
      corporate level taxation) represents free cash flow making
      these entities better risks for the bank(s) involved. I
      think over time troubled REITs will have to look at the
      HOT model for de-REITing to survive. WYN de-REITed
      and is surviving too albeit not in any fashion like
      HOT but WYN waited too long and was forced to take on
      a prfd stock that has tied up WYN's hands in
      certain ways going forward.

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