Omega Healthcare Investors gets $1.9 billion of new credit facilities

By Angela McDaniels

Tacoma, Wash., May 30 – Omega Healthcare Investors, Inc. entered into a new $1.8 billion senior credit facility on Thursday, and subsidiary OHI Healthcare Properties LP entered into a new $100 million senior term loan, according to a company news release.

Omega’s credit facility consists of a $1.25 billion multicurrency revolving credit facility, a $425 million term loan and a £100 million term loan.

The new credit facilities replace the company’s previous $2 billion senior revolving and term loan credit facility, part of which (a $200 million term loan due June 27, 2017) was previously repaid from proceeds of Omega’s $700 million senior notes offering in April.

Omega’s new credit facilities have an accordion feature that permits the company to expand its borrowing capacity to an aggregate of not more than $2.5 billion.

The OHI credit facility replaces OHI’s previous $100 million senior term loan.

The overall syndication of the new credit facilities raised more than $2.8 billion of commitments, according to the news release.

The initial interest rate on the new term loans is Libor plus 145 basis points. The margin over Libor ranges from 90 bps to 190 bps based on the company’s ratings.

The new term loans mature on May 25, 2022 and will be used to refinance existing debt.

The initial interest rate on the revolver is Libor plus 125 bps. The margin over Libor ranges from 87.5 bps to 165 bps based on the company’s ratings. The initial facility fee is 25 bps. It ranges from 12.5 bps to 30 bps.

The revolver matures on May 25, 2021. The company has two six-month extension options.

The revolver will be used for refinancing existing debt, financing acquisitions and funding working capital, capital expenditures and other general corporate purposes.

As of Thursday, the company had $333 million of borrowings outstanding under the revolver, of which $100 million was repaid on Friday.

For the new credit facilities, Bank of America Merrill Lynch is joint lead arranger and the bookrunner. Bank of America, NA is the administrative agent. Citizens Bank, NA, Credit Agricole Corporate and Investment Bank and JPMorgan Chase Bank, NA are joint lead arrangers and co-syndication agents.

Additional participants in Omega’s new credit facilities are MUFG, Compass Bank, Royal Bank of Canada, Bank of Nova Scotia, SunTrust Bank, Wells Fargo Bank, NA, Capital One, NA, Morgan Stanley Bank, NA, Branch Banking and Trust Co., Regions Bank, Bank of the West, Fifth Third Bank, Sumitomo Mitsui Banking Corp., Huntington National Bank, Stifel Bank & Trust, Synovus Bank, Bank of Taiwan, First Commercial Bank, Ltd., Land Bank of Taiwan, Taiwan Business Bank, E. Sun Commercial Bank Ltd., Hua Nan Commercial Bank Ltd., Mega International Commercial Bank Co., Ltd. and Taiwan Cooperative Bank.

Additional participants in OHI’s new term loan are MUFG, RBC, SunTrust, Wells Fargo, Capital One and Morgan Stanley Bank, NA.

Omega also entered into an amended and restated $250 million senior term loan. It amends and restates its previous $250 million senior term loan to implement some modifications to the terms and conditions similar to those now in the new credit facilities and the OHI credit facility.

Omega also announced the completion of an acquisition and lease transaction with Gold Care Homes. The transaction closed on May 11 for about $113 million and included 18 U.K. care home facilities.

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

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