Omega Healthcare Investors Closes $100 Million Revolving Credit Agreement

Strategic Insights -

Omega Healthcare Investors, Inc., a Real Estate Investment Trust specializing in the long-term care industry, has finalized a new unsecured credit agreement for a $100 million revolving acquisition line of credit facility. This strategic move provides the company with enhanced flexibility in investing and financing, while reducing its temporary financing costs. The agreement was led by a syndicate of seven banks, with NatWest Bank, N.A., as agent, and Fleet Bank, N.A., and Kleinwort Benson Limited as co-agents.

Key Takeaways:

  • Omega Healthcare Investors secured a $100 million revolving acquisition line of credit facility, which will enhance its flexibility in investing and financing.
  • The unsecured credit agreement was led by a syndicate of seven banks, including NatWest Bank, N.A., Fleet Bank, N.A., and Kleinwort Benson Limited.
  • The new facility reduces Omega's cost of temporary financing and provides improved flexibility in the timing and funding of additional investments.
  • Essel W. Bailey, Jr., President and CEO, emphasized the significance of moving to an unsecured status, citing a reduction in the company's cost of funds.
  • Robert L. Parker has resigned as Chairman of the Board of Directors but will continue serving as a consultant and an active member of the Board.
  • Omega's portfolio includes 181 health care facilities in 19 states, operated by 20 independent health care operating companies.

Statistics:

  • Omega's new unsecured credit agreement provides a $100 million revolving acquisition line of credit facility.
  • The facility was led by a syndicate of seven banks.
  • Omega's portfolio comprises 181 health care facilities.
  • The facilities are located in 19 states across the United States.
  • Omega operates in partnership with 20 independent health care operating companies.

Sources:

  • Omega Healthcare Investors, Inc. (1995). Press Release. July 17, 1995.
  • Omega Healthcare Investors, Inc. Announcement (1995). July 17, 1995.