8-K: Current report filing
Published on April 5, 2006
OMEGA
HEALTHCARE ANNOUNCES CLOSING OF NEW $200 MILLION
CREDIT
FACILITY
TIMONIUM,
MARYLAND - April 4, 2006 - Omega Healthcare Investors, Inc. (NYSE:OHI) today
announced
the closing of a new $200 million revolving senior secured credit facility
(the
“New Credit Facility”) on March 31, 2006.
The
New
Credit Facility is being provided by Bank of America, N.A., as Administrative
Agent, Deutsche Bank Trust Company Americas, UBS Securities LLC, General
Electric Capital Corporation, LaSalle Bank N.A., and Citicorp North America,
Inc. and will be used for acquisitions and general corporate
purposes.
The
New
Credit Facility replaces Omega’s previous $200 million senior secured credit
facility, which has been terminated. Omega will realize a 125 basis point
savings on LIBOR-based loans under the New Credit Facility, as compared to
LIBOR-based loans under its prior credit facility. The New Credit Facility
matures in four years, on March 31, 2010, and includes an “accordion feature”
that permits Omega to expand its borrowing capacity to $300 million during
its
first two years.
For
the
three-month period ending March 31, 2006, Omega will record a one-time, non-cash
charge of approximately $2.7 million relating to the write-off of deferred
financing costs associated with the termination of its prior credit facility.
At
March 31, 2006, Omega had $4.5 million of borrowings outstanding under the
New
Credit Facility.
Omega
is
a real estate investment trust investing in and providing financing to the
long-term care industry. At December 31, 2005, Omega owned or held mortgages
on
227 SNFs and ALFs with approximately 24,476 beds located in 27 states and
operated by 35 third-party healthcare operating companies.
FOR
FURTHER INFORMATION, CONTACT
Bob
Stephenson, CFO or Dan Booth, COO
at
(410)
427-1700
________________________
This
announcement includes forward-looking statements. Actual results may differ
materially from those reflected in such forward-looking statements as a result
of a variety of factors,
including, among other things: (i) uncertainties relating to the business
operations of the operators of the Omega’s properties, including those relating
to reimbursement by third-party payors, regulatory matters and occupancy
levels;
(ii) regulatory and other changes in the healthcare sector, including without
limitation, changes in Medicare reimbursement; (iii) changes in the financial
position of Omega’s operators; (iv) the ability of operators in bankruptcy to
reject unexpired lease obligations, modify the terms of Omega’s mortgages, and
impede the ability of Omega to collect unpaid rent or interest during the
pendency of a bankruptcy proceeding and retain security deposits for the
debtor's obligations; (v) the availability and cost of capital; (vi) competition
in the financing of healthcare facilities; and (vii) other factors identified
in
Omega’s filings with the Securities and Exchange
Commission. Statements
regarding future events and developments and Omega’s future performance, as well
as management's expectations, beliefs, plans, estimates or projections relating
to the future, are forward-looking statements. All
forward-looking statements included herein are based on current expectations
and
speak only as of the date of such statements. Omega undertakes no obligation
to
publicly update or revise any forward-looking statement.