Sabra Health Care announces upcoming draw on revolver and paydown

By Angela McDaniels

Tacoma, Wash., June 24 – Sabra Health Care REIT, Inc. plans to use its revolving credit facility to fund an asset purchase and to use proceeds from a stock offering to pay down the revolver, according to company news releases.

The company agreed to purchase four transitional care facilities in Maryland for $234 million. The purchase will be funded with revolver borrowings and available cash, and the company will assume a $10.8 million loan from the Department of Housing and Urban Development on one of the properties.

The company will also sell 5 million shares of its common stock in an underwritten public offering and use the proceeds to repay revolver borrowings. Any remaining proceeds will be used to fund possible future acquisitions or for general corporate purposes.

The company’s stock closed at $26.31 (Nasdaq: SBRA) on Wednesday. At that price, the stock sale would generate $131.55 million of proceeds.

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

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