New Issue: Omega Healthcare sells $61.35 million proceeds 7% add-on-notes to yield 6.61%

By Paul Deckelman

New York, Oct. 29 - Omega Healthcare Investors Inc. was heard by high-yield syndicate sources Friday to have sold a quickly shopped $60 million add-on offering of its 7% senior notes due 2014 (B1/BB-) via joint book-running managers Deutsche Bank Securities, UBS Investment Bank and Bank of America Securities.

The bonds priced at 102.25, for proceeds of $61.35 million, and a yield-to-worst of 6.61%.

Terms on the add-on notes are identical to those on the existing notes. Omega - a Timonium, Md.-based real estate investment trust that invests in the long-term care industry - sold its original tranche of $200 million 7% notes on March 15 via the same three investment banks.

The company plans to use the proceeds from the new bond deal for general corporate purposes, including acquisitions.

Issuer:	Omega Healthcare Investors Inc.
Amount:	$60 million (face), $61.35 million (proceeds)
Security description:	Add-on senior notes
Maturity:	April 1, 2014
Book-running managers:	Deutsche Bank Securities, UBS Investment Bank, Bank of America Securities (joint)
Coupon:	7%
Price:	102.25
Yield to worst:	6.61%
Spread:	290 basis points over Treasuries
Call:	Non-callable until April 1, 2009; after that at 103.5, 102.33, 101.67, and at par
Equity clawback:	Until April 1, 2007 for 35% at 107
Pricing date:	Oct. 29
Settlement date:	Nov. 8, with accrued interest
Ratings:	Moody's: B1
	S&P: BB-

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