Also Closes $50 Million Term Loan Facility
to Operating Partnership Subsidiary
Omega Healthcare Investors, Inc. (NYSE: OHI) (the
“Company” or “Omega”) today announced that it has
closed a new four-year $1.45 billion senior unsecured revolving
credit facility (“Credit Facility”). Omega also announced
that its operating partnership subsidiary, OHI Healthcare
Properties Limited Partnership (“OHI LP”), has entered into
a new four-year $50 million senior unsecured term loan credit
facility (the “OHI LP Credit Facility”). The Credit Facility
was supported by 30 incumbent and new financial institutions and
was substantially oversubscribed. Each of the new credit facilities
was effective April 30, 2021.
The Credit Facility replaced Omega’s previous $1.25 billion
senior unsecured revolving credit facility which was maturing in
May 2021. The Credit Facility is initially priced at LIBOR plus 120
basis points (a five basis point improvement from pricing under its
previous unsecured credit facility) based on the Company’s debt
ratings, plus a facility fee based on the same ratings (currently
25 basis points). Omega expects to use the Credit Facility for (a)
refinancing existing indebtedness, (b) financing acquisitions, and
(c) funding working capital, capital expenditures and other general
corporate purposes. The Credit Facility matures on April 30, 2025,
with two options by the Company to extend the maturity six
additional months for each option. The Credit Facility includes an
“accordion feature” that permits the Company to expand its
borrowing capacity to an aggregate of not more than $2.5
billion.
The OHI LP Credit Facility replaced OHI LP’s previous $50
million senior unsecured term loan credit facility which was
scheduled to mature in May 2022.
The Credit Facility and the OHI LP Credit Facility are made up
of a syndication of financial institutions. BofA Securities, Inc.
is Joint Lead Arranger and Sole Book Runner. Bank of America, N.A.
is the Administrative Agent and L/C Issuer. Citizens Bank, National
Association., Credit Agricole Corporate and Investment Bank,
JPMorgan Chase Bank, N.A. and Wells Fargo Bank, N.A., are Joint
Lead Arrangers and Co-Syndication Agents. Barclays Bank PLC,
Capital One, National Association, Morgan Stanley Bank, N.A., MUFG
Bank LTD. People’s United Bank, National Association, Regions Bank,
Royal Bank of Canada, The Bank of Nova Scotia, and Truist Bank are
Co-Documentation Agents. Bank of the West, Fifth Third Bank, The
Huntington National Bank, KeyBank and Mizuho Bank Ltd. are Managing
Agents. BBVA USA, Northern Trust, Stifel Bank & Trust, Synovus
Bank, Bank of Taiwan, First Commercial Bank, Ltd., Land Bank of
Taiwan, Taiwan Business Bank, E. Sun Commercial Bank Limited, Hua
Nan Commercial Bank Ltd., and Taiwan Cooperative Bank also
participate in the credit facilities.
Omega is a real estate investment trust that invests in the
long-term healthcare industry, primarily in skilled nursing and
assisted living facilities. Its portfolio of assets is operated by
a diverse group of healthcare companies, predominantly in a
triple-net lease structure. The assets span all regions within the
US, as well as in the UK.
Forward-Looking Statements
This press release includes forward-looking statements within
the meaning of the federal securities laws. All statements
regarding Omega’s or its tenants', operators', borrowers' or
managers' expected future financial condition, results of
operations, cash flows, funds from operations, dividends and
dividend plans, financing opportunities and plans, capital markets
transactions, business strategy, budgets, projected costs,
operating metrics, capital expenditures, competitive positions,
acquisitions, investment opportunities, dispositions, facility
transitions, growth opportunities, expected lease income, continued
qualification as a real estate investment trust (“REIT”), plans and
objectives of management for future operations and statements that
include words such as “anticipate,” “if,” “believe,” “plan,”
“estimate,” “expect,” “intend,” “may,” “could,” “should,” “will”
and other similar expressions are forward-looking statements. These
forward-looking statements are inherently uncertain, and actual
results may differ from Omega's expectations.
Omega’s actual results may differ materially from those
reflected in such forward-looking statements as a result of a
variety of factors, including, among other things: (i)
uncertainties relating to the business operations of the operators
of Omega’s properties, including those relating to reimbursement by
third-party payors, regulatory matters and occupancy levels; (ii)
the impact of novel coronavirus (“COVID-19”) on our business and
the business of our operators, including without limitation, the
extent and duration of the COVID-19 pandemic, increased costs
experienced by operators of skilled nursing facilities (“SNFs”) and
assisted living facilities (“ALFs”) in connection therewith, the
ability of operators to comply with new infection control and
vaccine protocols, and the extent to which continued government
support may be available to operators to offset such costs and the
conditions related thereto; (iii) the ability of any of Omega’s
operators in bankruptcy to reject unexpired lease obligations,
modify the terms of Omega’s mortgages and impede the ability of
Omega to collect unpaid rent or interest during the pendency of a
bankruptcy proceeding and retain security deposits for the debtor’s
obligations, and other costs and uncertainties associated with
operator bankruptcies; (iv) Omega’s ability to re-lease, otherwise
transition or sell underperforming assets or assets held for sale
on a timely basis and on terms that allow Omega to realize the
carrying value of these assets; (v) the availability and cost of
capital to us; (vi) changes in Omega’s credit ratings and the
ratings of its debt securities; (vii) competition in the financing
of healthcare facilities; (viii) competition in the long-term
healthcare industry and shifts in the perception of various types
of long-term care facilities, including SNFs and ALFs; (ix)
additional regulatory and other changes in the healthcare sector;
(x) changes in the financial position of our operators; (xi) the
effect of economic and market conditions generally, and
particularly in the healthcare industry; (xii) changes in interest
rates; (xiii) the timing, amount and yield of any additional
investments; (xiv) changes in tax laws and regulations affecting
REITs; (xv) the potential impact of changes in the SNF and ALF
market or local real estate conditions on the Company’s ability to
dispose of assets held for sale for the anticipated proceeds or on
a timely basis, or to redeploy the proceeds therefrom on favorable
terms; (xvi) Omega’s ability to maintain its status as a REIT;
(xvii) the effect of other factors affecting our business or the
businesses of our operators that are beyond our or their control,
including natural disasters, other health crises or pandemics and
governmental action, particularly in the healthcare industry, and
(xviii) other factors identified in Omega’s filings with the SEC.
Statements regarding future events and developments and Omega’s
future performance, as well as management’s expectations, beliefs,
plans, estimates or projections relating to the future, are forward
looking statements.
We caution you that the foregoing list of important factors may
not contain all the material factors that are important to you.
Accordingly, readers should not place undue reliance on those
statements. All forward-looking statements are based upon
information available to us on the date of this release. We
undertake no obligation to publicly update or revise any
forward-looking statement as a result of new information, future
events or otherwise, except as otherwise required by law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210430005552/en/
Matthew Gourmand, SVP, Corporate Strategy & Investor
Relations or Bob Stephenson, CFO at (410) 427-1700
Omega Healthcare Investors (NYSE:OHI)
Historical Stock Chart
From Apr 2024 to May 2024
Omega Healthcare Investors (NYSE:OHI)
Historical Stock Chart
From May 2023 to May 2024