Published on 10/7/2020 in the Prospect News Investment Grade Daily.
New Issue: Omega Healthcare prices $700 million of 3.375% notes due 2031 at 280 bps spread
By Cristal Cody
Tupelo, Miss., Oct. 7 – Omega Healthcare Investors, Inc. sold $700 million of 3.375% senior notes due Feb. 1, 2031 on Wednesday at 98.249 to yield 3.58%, according to an FWP filed with the Securities and Exchange Commission.
The notes (Baa3/BBB-/BBB-) priced at a spread of Treasuries plus 280 basis points.
J.P. Morgan Securities LLC, BofA Securities Inc., Credit Agricole Securities (USA) Inc., Wells Fargo Securities LLC, MUFG, Truist Securities, Inc., Capital One Securities, Inc., Stifel, Nicolaus & Co., Inc., BBVA Securities Inc., RBC Capital Markets, LLC, Regions Securities LLC and Scotia Capital (USA) Inc. were the bookrunners.
The notes are fully and unconditionally guaranteed by operating partnership OHI Healthcare Properties LP.
Omega Healthcare held fixed income investor calls for the offering on Tuesday.
The proceeds will be used to repay a portion of Omega’s outstanding borrowings under its credit facilities.
Omega is a Hunt Valley, Md.-based real estate investment trust focused on the long-term-care industry.
| Issuer: | Omega Healthcare Investors, Inc.
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| Guarantor: | OHI Healthcare Properties LP
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| Amount: | $700 million
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| Description: | Senior notes
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| Maturity: | Feb. 1, 2031
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| Bookrunners: | J.P. Morgan Securities LLC, BofA Securities Inc., Credit Agricole Securities (USA) Inc., Wells Fargo Securities LLC, MUFG, Truist Securities, Inc., Capital One Securities, Inc., Stifel, Nicolaus & Co., Inc., BBVA Securities Inc., RBC Capital Markets, LLC, Regions Securities LLC and Scotia Capital (USA) Inc.
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| Senior co-managers: | Fifth Third Securities, Inc. and Morgan Stanley & Co. LLC
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| Co-managers: | BNP Paribas Securities Corp., Huntington Investment Co. and SMBC Nikko Securities America, Inc.
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| Coupon: | 3.375%
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| Price: | 98.249
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| Yield: | 3.58%
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| Spread: | Treasuries plus 280 bps
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| Call features: | Make-whole call at Treasuries plus 45 bps before Nov. 1, 2030; thereafter at par
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| Trade date: | Oct. 7
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| Settlement date: | Oct. 9
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| 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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| Marketing: | Fixed income investor calls
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