S&P rates Omega Healthcare notes BB+

Standard & Poor's said it assigned its BB+ rating to Omega Healthcare Investors Inc.'s proposed $200 million senior unsecured notes due Feb. 15, 2020. A recovery rating of 2 was assigned, indicating a recovery of 70% to 90% in the event of default.

The note offering does not affect the company's BB corporate credit rating and positive outlook.

The company said the proceeds will go toward repaying borrowings under its secured credit facility and for other corporate purposes, including purchasing assets under a previously negotiated acquisition agreement with CapitalSource Inc., S&P said.

The company's leverage is expected to remain near 55% of capital with a debt-to-EBITDA ratio remaining below 4.5x after adjusting for the proposed notes and the April 1 acquisitions, the agency said.

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