CareTrust calls 5 7/8% notes at 102.938 via $300 million new issue

By Susanna Moon

Chicago, May 8 – CareTrust REIT, Inc. plans to redeem the 5 7/8% senior notes due 2021 issued by wholly owned subsidiaries CTR Partnership, LP and corporate co-issuer CareTrust Capital Corp.

CTR and CareTrust plan to price $300 million principal amount of senior notes due 2025 in an underwritten public offering, according to a company announcement.

The REIT issued a conditional call to redeem the notes at 102.938% of par on June 7 plus accrued interest up to but excluding the redemption date, according to a separate notice on Monday attached to an 8-K filing with the Securities and Exchange Commission.

The redemption will be contingent on the company obtaining funds from one or more debt financing transactions with enough proceeds to repay the notes.

Any remaining proceeds will be used to repay debt under the company’s revolving credit facility and for general corporate purposes, including acquisitions.

Columbia, Md.-based CareTrust is a real estate investment trust primarily engaged in the ownership, acquisition and leasing of health care related properties.

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