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Omega Healthcare sets price for 4.375% notes via tender offer
By Rebecca Melvin
New York, March 17 – Omega Healthcare Investors, Inc. will pay a total consideration of $1,080.09 for per $1,000 principal amount of 4.375% senior notes due 2023 (Cusip: 681936BJ8) tendered under its cash tender offer for up to $350 million of the $700 million outstanding of the notes, according to a Wednesday release.
The total consideration was calculated at 10 a.m. ET on March 17 using the 1.65% U.S. Treasury due May 31, 2023 plus a fixed spread of 50 basis points and it includes an early tender premium of $30 per $1,000 of notes. Omega will also pay accrued interest to but excluding the settlement date.
Earlier Wednesday, the company announced $441.61 million of the notes were tendered by the early tender time of 5 p.m. ET on March 16. Because the aggregate principal amount of the notes validly tendered and not validly withdrawn exceeds the aggregate maximum tender amount, Omega will not accept for purchase all of the notes that have been validly tendered and notes validly tendered and not validly withdrawn will be subject to proration.
A proration rate of about 79.41% for the notes will be used. The notes tendered by a holder will be multiplied by the proration rate and then rounded down to the nearest $1,000 increment; provided that if less than all of a holder's tendered notes are accepted for purchase, such holder must continue to hold notes in the minimum authorized denomination of $2,000 principal amount.
Since the tender offer for the notes was fully subscribed as of the early tender time, Omega will not accept any notes tendered after the early deadline. The company expects to purchase the early tendered notes on March 18, and the offer will expire at 11:59 p.m. ET March 30.
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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