Published on 3/3/2021 in the Prospect News Investment Grade Daily.
New Issue: Omega Healthcare prices $700 million of 3.25% notes due 2033 at 185 bps spread
By Wendy Van Sickle
Columbus, Ohio, March 3 – Omega Healthcare Investors, Inc. sold $700 million of 3.25% senior notes due April 15, 2033 on Wednesday at 99.304 to yield 3.32%, according to an FWP filed with the Securities and Exchange Commission.
The notes (Baa3/BBB-/BBB-) priced at a spread of Treasuries plus 185 basis points.
J.P. Morgan Securities LLC, BofA Securities Inc., Credit Agricole CIB, Wells Fargo Securities LLC, MUFG, Scotia Capital (USA) Inc., Capital One Securities, Inc., Morgan Stanley & Co. LLC, RBC Europe Ltd., Truist Securities, Inc., Stifel, Nicolaus & Co., Inc. and Regions Securities LLC were the bookrunners.
Proceeds will be used to repay borrowings under the company’s credit facilities and to fund a tender offer for up to $350 million of the company’s $700 million of 4.375% senior notes due 2023. The remainder, if any, will be used for general corporate purposes.
Omega is a Hunt Valley, Md.-based real estate investment trust focused on the long-term-care industry.
| Issuer: | Omega Healthcare Investors, Inc.
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| Amount: | $700 million
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| Description: | Senior notes
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| Maturity: | April 15, 2033
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| Bookrunners: | J.P. Morgan Securities LLC, BofA Securities Inc., Credit Agricole CIB, Wells Fargo Securities LLC, MUFG, Scotia Capital (USA) Inc., Capital One Securities, Inc., Morgan Stanley & Co. LLC, RBC Europe Ltd., Truist Securities, Inc., Stifel, Nicolaus & Co., Inc. and Regions Securities LLC
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| Senior co-managers: | Barclays and BNP Paribas Securities Corp.
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| Co-managers: | BBVA Securities Inc., Fifth Third Securities, Inc. and Huntington Investment Co.
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| Coupon: | 3.25%
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| Price: | 99.304
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| Yield: | 3.32%
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| Spread: | Treasuries plus 185 bps
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| Call features: | Make-whole call at Treasuries plus 30 bps before Jan. 15, 2033; thereafter at par
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| Trade date: | March 3
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| Settlement date: | March 10
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| Ratings: | Moody’s: Baa3
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| S&P: BBB-
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| Fitch: BBB-
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| Distribution: | SEC registered
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