Published on 6/30/2016 in the Prospect News Investment Grade Daily.
New Issue: Omega Healthcare prices $700 million 4.375% seven-year notes with 312.5 bps spread
By Cristal Cody
Eureka Springs, Ark., June 30 – Omega Healthcare Investors, Inc. sold $700 million of 4.375% seven-year senior notes with a spread of 312.5 basis points over Treasuries on Thursday, according to an FWP filing with the Securities and Exchange Commission.
The notes (Baa3/BBB-/BBB-) priced at 99.739 to yield 4.418%.
J.P. Morgan Securities LLC, BofA Merrill Lynch, Credit Agricole CIB and Stifel, Nicolaus & Co., Inc. were the senior managers.
The notes are fully and unconditionally guaranteed by Omega’s existing and future subsidiaries that guarantee debt under the company’s existing senior notes and the facilities under the company’s credit agreements.
Proceeds will be used to repay outstanding borrowings under the company’s revolving credit facility and for general corporate purposes.
Omega is a Hunt Valley, Md.-based real estate investment trust investing in and providing financing to the long-term-care industry.
| Issuer: | Omega Healthcare Investors, Inc.
|
| Guarantors: | Existing and future subsidiaries that guarantee debt under Omega Healthcare’s existing senior notes and facilities under company’s credit agreements
|
| Amount: | $700 million
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| Maturity: | Aug. 1, 2023
|
| Securities: | Senior notes
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| Bookrunners: | J.P. Morgan Securities LLC, BofA Merrill Lynch, Credit Agricole CIB, Stifel, Nicolaus & Co., Inc.
|
| Co-managers: | Capital One Securities, Inc., Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, SunTrust Robinson Humphrey, Inc., Wells Fargo Securities, LLC, MUFG, BB&T Capital Markets, BBVA Securities Inc., Regions Securities LLC
|
| Coupon: | 4.375%
|
| Price: | 99.739
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| Yield: | 4.418%
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| Spread: | Treasuries plus 312.5 bps
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| Call feature: | Make-whole call at Treasuries plus 50 bps; par call on or after June 1, 2023
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| Pricing date: | June 30
|
| Settlement date: | July 12
|
| 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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