Published on 9/29/2010 in the Prospect News High Yield Daily.
New Issue: Omega Healthcare sells upsized $225 million 6¾% 12-year notes at 98.984 to yield 6 7/8%
By Paul A. Harris
St. Louis, Sept. 29 - Omega Healthcare Investors, Inc. priced an upsized $225 million issue of 6¾% 12-year senior notes (expected ratings Ba2/BB+/) at 98.984 to yield 6 7/8% on Wednesday, according to an informed source.
The yield printed at the tight end of the 7% area price talk.
Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Jefferies & Co. and UBS Investment Bank were the joint bookrunners for the quick-to-market issue, which was upsized from $200 million.
Proceeds will be used to repay revolver debt 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: | $225 million, increased from $200 million
|
| Proceeds: | $222,714,000
|
| Maturity: | Oct. 15, 2022
|
| Securities: | Senior notes
|
| Bookrunners: | Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Jefferies & Co., UBS Investment Bank
|
| Co-managers: | Credit Agricole CIB, RBS Securities Inc., Stifel, Nicolaus & Co.
|
| Coupon: | 6¾%
|
| Price: | 98.984
|
| Yield: | 6 7/8%
|
| Spread: | 441 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: | Sept. 29
|
| Settlement date: | Oct. 4
|
| Expected ratings: | Moody's: Ba2
|
| Standard & Poor's: BB+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 7% area
|
| Marketing: | Quick to market
|
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