HUNT VALLEY, Md. — Omega Healthcare Investors (NYSE: OHI), a Hunt Valley-based REIT, has entered into a new two-year, $400 million senior unsecured term loan.
The loan matures on Aug. 8, 2025, with two options by the company to extend the maturity by 12 additional months for each option, subject to certain conditions. The loan includes an “accordion feature” that permits the company to expand its borrowing capacity to an aggregate of up to $500 million.
A syndication of 14 financial institutions is providing the capital. BofA Securities Inc. is joint lead arranger and sole book runner. Bank of America NA is the administrative agent. Citizens Bank National Association, Crédit Agricole Corporate and Investment Bank, JPMorgan Chase Bank NA and Wells Fargo Bank NA are joint lead arrangers and co-syndication agents. The Bank of Nova Scotia, The Huntington National Bank, M&T Bank, MUFG Bank LTD, Regions Bank, Royal Bank of Canada and Truist Bank are co-documentation agents.“The new term loan will fully replenish the $350 million of cash we used to repay our Aug. 1 bond maturity,” says Bob Stephenson, Omega’s CFO. “In addition to the balance sheet cash provided by the term loan, we have our entire $1.45 billion revolving credit facility and over $700 million remaining under our ATM equity shelf program available to fund future investments and repay debt maturities, including our $400 million in debt due in April 2024.”