Published on 11/9/2010 in the Prospect News High Yield Daily.
New Issue: Omega Healthcare sells $350 million add-on to 6¾% notes due 2022 at 103
By Paul A. Harris
St. Louis, Nov. 9 - Omega Healthcare Investors, Inc. priced a $350 million add-on to its 6¾% senior notes due Oct. 15, 2022 (expected ratings Ba2/BB+/) at 103.0 on Tuesday, resulting in a 6.26% yield, according to an informed source.
The reoffer price came on top of the price talk.
Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Jefferies & Co. and UBS Investment Bank were joint bookrunners for the quick-to-market deal.
Co-managers were Credit Agricole Securities CIB, RBS Securities Inc. and Stifel, Nicolaus & Co.
Proceeds will be used to repurchase the company's $310 million 7% senior notes due 2014 and for general corporate purposes.
The issuer is a Hunt Valley, Md.-based self-administered real estate investment trust investing in income-producing health care facilities, principally long-term care facilities, located in the United States.
| Issuer: | Omega Healthcare Investors, Inc.
|
| Face amount: | $350 million
|
| Proceeds: | $363.72 million (approximate)
|
| Maturity: | Oct. 15, 2022
|
| Security description: | Fungible add-on to 6¾% senior notes
|
| Joint bookrunners: | Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Jefferies & Co., UBS Investment Bank
|
| Co-managers: | Credit Agricole Securities CIB, RBS Securities Inc., Stifel, Nicolaus & Co.
|
| Coupon: | 6¾%
|
| Price: | 103.0
|
| Yield: | 6.26%
|
| Spread: | 363 bps
|
| Call features: | Callable on Oct. 15, 2015 at 103.375, 102.25, 101.125, par on and after Oct. 15, 2018
|
| Equity clawback: | 35% at 106.75 until Oct. 15, 2013
|
| Change-of-control put: | 101%
|
| Trade date: | Nov. 9
|
| Settlement date: | Nov. 23 with accrued interest
|
| Expected ratings: | Moody's: Ba2
|
| Standard & Poor's: BB+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 103 area
|
| Marketing: | Quick to market
|
| Original issue: | $225 million priced at 98.984 to yield 6 7/8% on Sept. 29, 2010
|
| Total issue size: | $575 million
|
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