Sabra tenders, seeks consents for $211.3 million 8 1/8% notes due 2018

By Susanna Moon

Chicago, Jan. 8 - Sabra Health Care LP and Sabra Capital Corp. began a tender offer and consent solicitation for their $211.3 million outstanding principal amount of 8 1/8% senior notes due 2018, according to a 424B5 filing with the Securities and Exchange Commission and a company press release.

The purchase price will be $1,068.37 per $1,000 principal amount of notes plus a consent fee of $30.00 per $1,000 of notes tendered by 5 p.m. ET on Jan. 22.

The offer will end on Feb. 5.

Holders also will receive accrued interest up to but excluding the settlement date, which is expected to be Jan. 23 for early tendered notes and Feb. 6 for remaining tenders.

The tender offer and consent solicitation are conditioned upon obtaining consents from holders of a majority of the outstanding notes to shorten to three business days the minimum notice period for optional redemptions and to eliminate substantially all of the restrictive covenants and certain events of default.

The companies expect to pay about $232 million, excluding accrued interest of about $3.9 million, to purchase all of the outstanding notes.

The tender offer also is conditioned upon the company obtaining financing with enough proceeds to fund the offer.

The company planned to sell $300 million of seven-year senior notes in a quick-to-market deal on Jan. 8.

D.F. King & Co., Inc. (800 967-4612 or 212 269-5550 collect or by emailing sabra@dfking.com) is the tender agent and information agent. BofA Merrill Lynch (980 387-3907 collect and 888 292-0070) is the dealer manager.

Sabra is an Irvine, Calif.-based health care real estate investment trust.

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