Sabra collects tenders for 99.8% of 8 1/8% notes at early deadline

By Jennifer Chiou

New York, Jan. 23 - Sabra Health Care LP and Sabra Capital Corp. announced the receipt of tenders and consents from holders of $210.9 million, or 99.8%, of their $211.3 million outstanding principal amount of 8 1/8% senior notes due 2018 as of the 5 p.m. ET on Jan. 22 consent deadline.

As previously reported, 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 the early deadline.

The offer will end on Feb. 5. It began on Jan. 8.

Holders also will receive accrued interest up to but excluding the settlement date, which was Jan. 23 for early tendered notes and will be 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 some events of default.

The companies already said they 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 companies priced an upsized $350 million of seven-year senior notes (Ba3/BB-/) at par to yield 5½% on Jan. 8.

BofA Merrill Lynch (980 387-3907 collect and 888 292-0070) is the dealer manager. 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.

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

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