By Paul A. Harris
Portland, Ore., July 23 - Sabra Health Care LP and Sabra Capital Corp. priced an upsized $100 million add-on to their 8 1/8% senior notes due Nov. 1, 2018 (existing ratings B1/BB-/) at 106 on Monday, according to a syndicate source.
The reoffer price, which came on top of the price talk, rendered a 6.487% yield to worst.
Bank of America Merrill Lynch, Barclays Capital Inc. and Wells Fargo Securities LLC were the joint bookrunners for the quick-to-market add-on, which was upsized from $75 million.
Proceeds will be used to repay revolver debt, as well as to fund possible future acquisitions and for general corporate purposes.
The issue is an Irvine, Calif.-based self-administered, self-managed real estate investment trust that owns and invests in real estate for the health care industry.
The original $225 million issue priced at par in October 2010.
| Issuer: | Sabra Health Care LP and Sabra Capital Corp.
|
| Face amount: | $100 million, increased from $75 million
|
| Proceeds: | $106 million
|
| Maturity: | Nov. 1, 2018
|
| Security description: | Add-on to 8 1/8% senior notes due Nov. 1, 2018
|
| Bookrunners: | Bank of America Merrill Lynch, Barclays Capital Inc., Wells Fargo Securities LLC
|
| Coupon: | 8 1/8%
|
| Price: | 106
|
| Yield to worst: | 6.487%
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Nov. 1, 2014, then callable at 104.063, 102.031, par on and after Nov. 1, 2016
|
| Equity clawback: | 35% at 108.125 until Nov. 1, 2013
|
| Trade date: | July 23
|
| Settlement date: | July 26 with accrued interest
|
| Existing ratings: | Moody's: B1
|
| Standard & Poor's: BB-
|
| Fungibility: | Fungible upon registration
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 106
|
| Original issue: | $225 million issue priced at par in October 2010
|
| Total issue size: | $325 million
|
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