Omega Healthcare ends tender for 7% notes, calls remainder at 102.333

By Susanna Moon

Chicago, Dec. 8 - Omega Healthcare Investors, Inc. said investors tendered $264.7 million of its $310 million of 7% senior notes due 2014 as of 8 a.m. ET on Dec. 8, the expiration date.

The company said on Nov. 23 that it received the needed consents to amend the notes, taking in consents from holders of roughly 85% of the notes, and executed a supplemental indenture.

Omega sought consents from holders of a majority of notes to eliminate substantially all of the restrictive covenants and event of default provisions.

The company also said it will redeem all of the remaining $45.3 million principal amount of notes at 102.333 on Dec. 16. The total purchase amount is $46.4 million plus accrued up to the redemption date.

Those who tendered by the consent deadline received $1,025.83 for each $1,000 principal amount of notes, including a consent payment of $30.00.

Holders who tendered after the consent date but by the tender expiration will receive the total payout less the consent fee.

The company also will pay accrued interest.

The offer began on Nov. 8.

The offer was subject to a financing condition. Omega priced a $350 million add-on to its 6¾% notes due Oct. 15, 2022 at 103.0 on Nov. 9.

D.F. King & Co., Inc. was the depositary and information agent (800 431-9643 or call collect 212 269-5550). Bank of America Merrill Lynch was the dealer manager and solicitation agent (888 292-0070 or call collect 980 388-9217).

The issuer is a Hunt Valley, Md.-based self-administered real estate investment trust.

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