By Paul A. Harris
St. Louis, Feb. 4 - Omega Healthcare Investors, Inc. priced a $200 million issue of 7½% 10-year senior unsecured notes (Ba3/BB+/) at 98.278 to yield 7¾% on Thursday, according to an informed source.
The yield printed on top of yield talk. The reoffer price came toward the cheap end of the 1 to 2 points of discount talk.
Deutsche Bank Securities Inc., Bank of America Merrill Lynch and UBS Investment Bank ran the books for the quick-to-market deal.
Proceeds will be used to repay mortgage debt assumed in connection with the company's recent acquisition of 40 facilities, to repay outstanding revolver debt and for general corporate purposes.
The issuer is a Hunt Valley, Md.-based real estate investment trust that invests in and provides financing to the long-term care industry.
| Issuer: | Omega Healthcare Investors, Inc.
|
| Amount: | $200 million
|
| Maturity: | Feb. 15, 2020
|
| Securities: | Senior unsecured notes
|
| Bookrunners: | Deutsche Bank Securities Inc., Bank of America Merrill Lynch, UBS Investment Bank
|
| Coupon: | 7½%
|
| Price: | 98.278
|
| Yield: | 7¾%
|
| Spread: | 414 bps
|
| Call protection: | Five years
|
| Trade date: | Feb. 4
|
| Settlement date: | Feb. 9
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB+
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 7¾% area yield with 1-2 points OID
|
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