Omega Healthcare enters $250 million seven-year term loan facility

By Tali Rackner

Norfolk, Va., Dec. 22 – Omega Healthcare Investors, Inc. entered into a $250 million seven-year senior unsecured term loan facility on Dec. 16, according to an 8-K filing with the Securities and Exchange Commission.

The Bank of Tokyo-Mitsubishi UFJ, Ltd. is the administrative agent.

The credit agreement may be increased by up to $150 million.

Interest is equal to Libor plus 140 basis points to 235 bps, based on the company’s ratings.

Proceeds may be used to refinance existing debt, to finance acquisitions and to fund working capital, capital expenditures and other general corporate purposes.

The credit agreement also contains financial covenants relating to maximum total leverage, maximum secured leverage, maximum unsecured leverage, minimum fixed charge coverage, minimum consolidated tangible net worth, minimum unsecured debt yield, minimum unsecured interest coverage and maximum distributions.

The facility may be prepaid at any time in whole or in part.

The entire amount of the facility was advanced at closing. It does not amortize and is due and payable in full at maturity on Dec. 16, 2022.

Bank of Tokyo-Mitsubishi and Capital One, NA are joint lead arrangers and bookrunners. Capital One is the syndication agent, and UMB Bank, NA and Regions Bank are co-documentation agents.

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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