Omega Healthcare completes $700 million unsecured credit facility

By Sara Rosenberg

New York, Dec. 6 - Omega Healthcare Investors Inc. closed on Thursday on a new $700 million unsecured credit facility, according to a news release.

Bank of America Merrill Lynch was the bookrunner on the deal and a joint lead arranger with Credit Agricole Corporate and Investment Bank and RBS Citizens.

The facility consists of a $500 million four-year revolver that has a one-year extension option and a $200 million five-year term loan.

Initial pricing on the revolver is Libor plus 150 basis points with a 30 bps unused fee. The spread can range from Libor plus 100 bps to 190 bps and the unused fee can range from 15 bps to 45 bps, based on ratings.

Pricing on the term loan is initially Libor plus 175 bps. The spread can range from Libor plus 110 bps to 230 bps based on ratings.

There is a $300 million accordion feature.

Proceeds were used to refinance an existing $475 million revolver and are available for acquisitions and general corporate purposes.

At close, there was $131 million drawn under the new revolver and $100 million drawn under the term loan. The company has up to 120 days to borrow the remaining term loan amount.

Omega is a Hunt Valley, Md.-based real estate investment trust investing in and providing financing to the long-term care industry.

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