Omega Healthcare obtains $225 million credit facility

By Sara Rosenberg

New York, June 24 - Omega Healthcare Investors Inc. closed on a new $225 million senior secured credit facility. GE Healthcare Financial Services acted as lead arranger and syndication agent on the deal.

The four-year facility, which has a one-year extension option, consists of a $125 million term loan and a $100 million revolver.

The financing structure was approved by GE in less than 30 days and closed shortly thereafter.

Proceeds will be used to refinance the company's two existing credit facilities and issue letters of credit. Furthermore, proceeds can be used to pay accrued preferred dividends and for general corporate purposes.

"This financing significantly extends Omega's maturing debt while providing Omega with broad flexibility in managing the current portfolio, making decisions regarding dividend reinstatement and providing for future growth opportunities," said Taylor Pickett, chief executive officer, in a news release.

At closing, Omega has approximately $299 million in total debt, including about $187 million drawn on the new $225 million loan. Invested cash and revolver availability is about $69 million.

Omega is a Timonium, Md. real estate investment trust that provides financing and capital for the healthcare industry.

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