Omega Healthcare closes $1.45 billion four-year revolver

By Wendy Van Sickle

Columbus, Ohio, April 30 – Omega Healthcare Investors, Inc. closed a new $1.45 billion four-year senior unsecured revolving credit facility, according to a news release.

The revolver replaced Omega’s previous $1.25 billion senior unsecured revolver, which was maturing in May.

The new revolver is initially priced at Libor plus 120 basis points based on the company’s debt ratings, which is an improvement of 5 bps over the previous credit facility.

There is a facility fee based on ratings that is currently 25 bps. Omega expects to use the revolver to refinance existing debt, finance acquisitions and fund working capital, capital expenditures and other general corporate purposes.

The credit facility matures on April 30, 2025, with two options to extend the maturity six additional months.

An accordion feature permits the company to expand its borrowing capacity to up to $2.5 billion.

Omega also announced that its operating partnership subsidiary, OHI Healthcare Properties LP, has entered into a new $50 million four-year senior unsecured term loan credit facility.

The OHI LP credit facility replaced OHI LP’s previous $50 million senior unsecured term loan credit facility, which was scheduled to mature in May 2022.

Each of the new credit facilities was effective Friday.

BofA Securities, Inc. is the bookrunner and a joint lead arranger along with Citizens Bank, NA, Credit Agricole CIB, JPMorgan Chase Bank, NA and Wells Fargo Bank, NA. Bank of America, NA is the administrative agent. Barclays Bank plc, Capital One, NA, Morgan Stanley Bank, NA, MUFG Bank Ltd., People’s United Bank, NA, Regions Bank, Royal Bank of Canada, Bank of Nova Scotia and Truist Bank are co-documentation agents. Bank of the West, Fifth Third Bank, Huntington National Bank, KeyBank and Mizuho Bank Ltd. are managing agents.

Omega is a Hunt Valley, Md.-based real estate investment trust focused on the long-term-care industry.

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