Omega Healthcare $125 million credit facility launch expected in next few weeks

By Sara Rosenberg

New York, March 8 - Omega Healthcare Investors Inc. is expected to hold a bank meeting for its proposed $125 million senior secured revolving credit facility within the next few weeks, with the probability being that it will be March business, according to a source close to the deal. Banc of America Securities LLC is the sole lead arranger and sole bookrunner, Bank of America is the administrative agent, and Deutsche Bank AG and UBS Loan Finance LLC have committed to the deal as well.

Proceeds from the revolver may be used for acquisitions and general corporate purposes.

Closing on the revolver is conditioned upon the successful completion of a $200 million unsecured notes offering, which will be used to repay borrowings under the existing senior secured credit facility maturing in 2007, and for working capital and general corporate purposes, that could include the redemption of the company's 9.25% Series A preferred stock shares.

The proposed refinancing and notes offering, if completed, would replace the company's existing $225 million senior secured credit facility and $50 million acquisition credit facility, which would be terminated.

Upon completion of these transactions, Omega expects to record expenses of about $12.4 million, of which $6.4 million would consist of non-cash charges relating to deferred financing costs previously paid in connection with the establishment of the existing credit facilities that must be written off upon termination of the facilities, according to a company news release.

Omega Healthcare is a Timonium, Md.-based real estate investment trust investing in and providing financing to the long-term care industry.

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