Omega Healthcare Investors, Inc. has entered into a new two-year $400 million senior unsecured term loan (the ?Term Loan?). The Term Loan matures on August 8, 2025, with two options by the Company to extend the maturity by 12 additional months for each option, subject to certain conditions. The Term Loan includes an ?accordion feature?
that permits the Company to expand its borrowing capacity to an aggregate of up to $500 million. The Term Loan will bear interest at a rate consistent with the Company?s existing $50 million term loan equal to (a) Term or Daily Simple SOFR plus a spread of between 0.85% and 1.85% or (b) the base rate plus a spread between 0.00% and 0.85%, with each spread determined based on the Company?s credit rating. The Company also executed $400 million of variable-to-fixed interest rate swaps that fix the Secured Overnight Financing Rate (?SOFR?) variable component of the Term Loan at 4.015% for four years.
Based on the Company?s current ?BBB-? credit rating and giving effect to the related swaps, the Term Loan will bear interest at an all-in fixed rate of 5.565%. The entire amount of the Term Loan will be funded on August 14, 2023, concurrent with the starting of the forward swaps.
The Term Loan commitments were provided by a syndication of 14 financial institutions to the Company. BofA Securities, Inc. is Joint Lead Arranger and Sole Book Runner. Bank of America, N.A. is the Administrative Agent.
Citizens Bank, National Association, Crédit Agricole Corporate and Investment Bank, JPMorgan Chase Bank, N.A. and Wells Fargo Bank, N.A., 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.