Omega Healthcare tenders for up to $250 million 4.375% notes due 2023

By Taylor Fox

New York, March 3 – Omega Healthcare Investors, Inc. has begun a cash tender offer to purchase up to $250 million of its $700 million outstanding 4.375% senior notes due 2023 (Cusip: 681936BJ8), according to a news release.

The total consideration for tendered notes will be calculated at 10 a.m. ET March 17 using the 1.65% U.S. Treasury due May 31, 2023 plus a fixed spread of 50 basis points.

The company will pay an early tender premium of $30 per $1,000 of notes to holders who tender notes prior to the early tender time at 5 p.m. ET on March 16.

Omega will also pay accrued interest to but excluding the applicable settlement date.

If the maximum tender amount is reached at or prior to the early tender time, no notes that are tendered after the early tender time will be accepted for purchase.

The withdrawal deadline is 5 p.m. ET March 16.

The offer will expire at 11:59 p.m. ET March 30.

The company may choose to purchase early tendered notes on an early settlement date. The final settlement date is expected to be two business days after the expiration.

In addition to the tender cap and possible proration, the tender offer is subject to a financing condition.

Credit Agricole Securities (USA) Inc. (866 807-6030, 212 261-7802; us.liabilitymanagement@ca-cib.com) is the lead dealer manager.

Omega is a Hunt Valley, Md.-based real estate investment trust focused on the long-term-care industry.

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