Omega Announces New $320 Million Credit Facility

Omega Healthcare Investors Inc., a real estate investment trust based in Hunt Valley, Md., has entered into a new $320 million revolving senior secured credit facility. The new line expires in four years, provided the company has refinanced or repaid its $310 million, 7% Senior Notes due April 2014 prior to Dec. 31, 2013. In the event the senior notes have not been refinanced or repaid by that deadline, the maturity date will become Dec. 31, 2013. The new credit facility includes an "accordion feature" that permits Omega to expand its borrowing capacity to $420 million during its first three years. It is priced at Libor plus an applicable percentage (ranging from 325 basis points to 425 basis points) based on the company's consolidated leverage. The applicable percentage above Libor is currently 350 basis points. The credit was extended by a syndication of eight financial institutions. Banc of America Securities LLC was joint lead arranger and sole book manager. Deutsche Bank Trust Co. Americas was joint lead arranger and co-syndication agent. UBS Securities LLC was co-syndication agent and Bank of America NA was the administrative Agent. General Electric Capital Corp., Credit Agricole Corporate and Investment Bank, Jefferies Group Inc., RBS Citizens NA, and Stifel Bank & Trust are the managing agents.