Sabra Healthcare to get $100 million revolver, $225 million notes

By Sara Rosenberg

New York, Sept. 27 - Sabra Health Care REIT Inc. anticipates getting a $100 million secured revolving credit facility and $225 million of notes prior to the completion of its separation from Sun Healthcare Group Inc, according to a an S-4/A recently filed with the Securities and Exchange Commission.

Sabra's revolver is expected to have a three- to five-year maturity and a $100 million accordion feature.

And, Sabra's senior unsecured notes are anticipated to have an eight-year maturity.

Proceeds from the new debt will be used to repay Sun's 9 1/8% senior subordinated notes and the outstanding term loans under Sun's existing credit facility, and for general corporate purposes.

As was previously reported, Sun is separating into two publicly traded companies, with the new Sun entity providing nursing, rehabilitative and related specialty health care services, and managing the rehabilitation therapy, medical staffing services and hospice businesses.

The other entity, Sabra, will own substantially all of Sun's currently owned real property portfolio and intends to operate as a real estate investment trust.

The separation will be done through a distribution to Sun stockholders of the common stock of the new Sun Healthcare Group.

The separation is expected to be completed in the fourth quarter, subject to regulatory, stockholder, final board and other approvals.

Sabra is located in Irvine, Calif.

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