Omega Healthcare accepts $350 million of early tendered 4.375% notes

By Taylor Fox

New York, March 17 – Omega Healthcare Investors, Inc. announced the early tender results of its cash tender offer for up to $350 million of its $700 million outstanding 4.375% senior notes due 2023 (Cusip: 681936BJ8), according to a news release.

As of the 5 p.m. ET March 16 early tender time, $441,610,000 of the notes were tendered, and the maximum amount of $350 million was accepted for purchase.

Omega previously upsized the offer from $250 million.

As reported, 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 tendered prior to the early tender time.

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

The company expects to purchase early tendered notes on March 18.

No notes that are tendered after the early tender time will be accepted for purchase as the maximum purchase amount has been reached, the company said on Wednesday.

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

The tender offer was subject to a financing condition, which has been satisfied.

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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