Omega Prices $700M Senior Notes Offering to Help Pay for Aviv Acquisition

by Jeff Shaw

HUNT VALLEY, Md. — Omega Healthcare Investors Inc. (NYSE:OHI) has priced a private offering of $700 million aggregate principal amount of 4.50 percent senior notes due 2027 at 98.546 percent of face value. The offering is expected to close on March 18, subject to customary closing conditions.

The notes will be offered only to qualified institutional buyers and to non-U.S. persons outside of the United States under Regulation S under the Securities Act.

Omega intends to use the net proceeds of the offering for many purposes, which may include the repayment of Aviv REIT Inc. (NYSE:Aviv) debt in connection with Omega’s previously announced acquisition of Aviv, repayment of future maturities on Omega’s outstanding debt, and future acquisitions.

Omega is a real estate investment trust investing in and providing financing to the long-term care industry. As of the end of 2014 Omega’s portfolio of investments included 560 operating healthcare facilities located in 37 states and operated by 50 third-party operators.

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