Published on 9/17/2019 in the Prospect News Investment Grade Daily.
New Issue: Omega Healthcare prices $500 million 3.625% 10-year notes at 200 bps spread
By Cristal Cody
Tupelo, Miss., Sept. 17 – Omega Healthcare Investors, Inc. priced $500 million of 3.625% 10-year senior notes on Tuesday at 98.542 to yield 3.801%, according to a market source and an FWP filed with the Securities and Exchange Commission.
The notes (Baa3/BBB-/BBB-) priced at a spread of Treasuries plus 200 basis points, compared to initial talk in the 220 bps spread area. Guidance was later revised to the 205 bps area.
Wells Fargo Securities LLC, BofA Securities, Inc., Credit Agricole Securities (USA) Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the bookrunners.
The notes are fully and unconditionally guaranteed by subsidiary OHI Healthcare Properties LP.
Omega Healthcare held fixed income investor calls for the offering on Monday.
Proceeds will be used to repay outstanding debt under the company’s credit facilities and for general corporate purposes.
Omega is a Hunt Valley, Md.-based real estate investment trust focused on the long-term-care industry.
| Issuer: | Omega Healthcare Investors, Inc.
|
| Guarantor: | OHI Healthcare Properties LP
|
| Amount: | $500 million
|
| Description: | Senior notes
|
| Maturity: | Oct. 1, 2029
|
| Bookrunners: | Wells Fargo Securities LLC, BofA Securities, Inc., Credit Agricole Securities (USA) Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC
|
| Senior co-managers: | Capital One Securities, Inc., BB&T Capital Markets, BBVA Securities Inc., MUFG, RBC Capital Markets, LLC, Regions Securities LLC, Scotia Capital (USA) Inc., Stifel, Nicolaus & Co., Inc. and SunTrust Robinson Humphrey, Inc.
|
| Co-managers: | Fifth Third Securities, Inc., Huntington Investment Co. and SMBC Nikko Securities America, Inc.
|
| Coupon: | 3.625%
|
| Price: | 98.542
|
| Yield: | 3.801%
|
| Spread: | Treasuries plus 200 bps
|
| Call features: | Make-whole call at Treasuries plus 30 bps; on or after July 1, 2029 at par
|
| Trade date: | Sept. 17
|
| Settlement date: | Sept. 20
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| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
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| Fitch: BBB-
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| Distribution: | SEC registered
|
| Marketing: | Fixed income investor calls
|
| Price guidance: | Treasuries plus 205 bps area, plus or minus 5 bps; initial talk at Treasuries plus 220 bps area
|
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