Unsecured credit

Omega Announces Closing of New $ 1.45 Billion Senior Unsecured Credit Facility

HUNT VALLEY, Maryland – (COMMERCIAL THREAD) – Omega Healthcare Investors, Inc. (NYSE: OHI) (the “Society” Where “Omega“) today announced that it has entered into a new $ 1.45 billion four-year senior unsecured revolving credit facility (“Credit facility“). Omega also announced that its operating partnership subsidiary, OHI Healthcare Properties Limited Partnership (“OHI LP“), entered into a new four-year, $ 50 million senior unsecured term credit facility (the”OHI LP Credit Facility“). The credit facility was backed by 30 existing and new financial institutions and was significantly oversubscribed. Each of the new credit facilities came into effect on April 30, 2021.

The credit facility replaced Omega’s previous senior unsecured $ 1.25 billion revolving credit facility which matured in May 2021. The credit facility is initially established at LIBOR plus 120 basis points (a five basis point improvement over the price of its previous unsecured credit facility) based on the Company’s debt ratings, plus a facility fee based on the same ratings (currently 25 points of based). Omega plans to use the credit facility to (a) refinance existing debt, (b) finance acquisitions, and (c) finance working capital, capital expenditures and other general corporate purposes. The credit facility matures on April 30, 2025, with two options by the Company to extend the term by an additional six months for each option. The credit facility includes an “accordion feature” which allows the Company to extend its borrowing capacity to a total of up to $ 2.5 billion.

The OHI LP credit facility replaced OHI LP’s former $ 50 million unsecured term credit facility, which was scheduled to mature in May 2022.

The OHI LP Credit Facility and Credit Facility consist of a syndication of financial institutions. BofA Securities, Inc. is the Joint Principal Arranger and Sole Bookkeeper. Bank of America, NA is the administrative agent and the issuer of the L / C. Citizens Bank, National Association., Credit Agricole Corporate and Investment Bank, JPMorgan Chase Bank, NA and Wells Fargo Bank, NA, are co-arrangers and co-syndication agents. Barclays Bank PLC, Capital One, National Association, Morgan Stanley Bank, NA, MUFG Bank LTD. The United People’s Bank, the National Association, the Banque Régions, the Royal Bank of Canada, the Bank of Nova Scotia and the Truist Bank are co-documentation agents. Bank of the West, Fifth Third Bank, The Huntington National Bank, KeyBank and Mizuho Bank Ltd. are the managing agents. BBVA USA, Northern Trust, Stifel Bank & Trust, Synovus Bank, Bank of Taiwan, First Commercial Bank, Ltd., Land Bank of Taiwan, Taiwan Business Bank, E. Sun Commercial Bank Limited, Hua Nan Commercial Bank Ltd. and Taiwan The Cooperative Bank also participates in the credit facilities.

Omega is a real estate investment trust that invests in the long-term healthcare industry, primarily in skilled nursing facilities and assisted living facilities. Its asset portfolio is operated by a diverse group of healthcare companies, primarily under a triple net rental structure. The assets cover all regions of the United States, as well as the United Kingdom.

Forward-looking statements

This press release contains forward-looking statements within the meaning of federal securities laws. All statements regarding the expected future financial condition of Omega or its tenants, operators, borrowers or managers, operating results, cash flow, operating funds, dividends and dividend plans, opportunities and financing plans, capital market transactions, business strategy, budgets, projected costs, operating parameters, capital expenditures, competitive positions, acquisitions, investment opportunities, arrangements, facility transitions, opportunities for growth, expected rental income, continued qualification as a real estate investment trust (“REIT”), management plans and objectives for future transactions and statements that include words such as “anticipate”, “if”, “believe” “,” Plan “,” estimate “,” expect “,” intend “,” can “,” could “,” could “,” should “,” will “and others. Similar expressions are forward-looking statements. These forward-looking statements are inherently uncertain and actual results may differ from Omega’s expectations.

Omega’s actual results may differ materially from those reflected in these forward-looking statements due to various factors, including, but not limited to: (i) uncertainties relating to the business operations of the operators of Omega properties, including those relating to reimbursement by third-party payers, regulatory issues and occupancy rates; (ii) the impact of the novel coronavirus (“COVID-19”) on our business and those of our operators, including, without limitation, the extent and duration of the COVID-19 pandemic, the increased costs incurred by operators of qualified nursing establishments (“SNF”) and assisted living facilities (“ALF”) related to them, the ability of operators to comply with new infection control protocols and immunization, and the extent to which continued government support can be made available to operators to offset these costs and the associated conditions; (iii) the ability of one of the bankrupt Omega operators to reject unexpired lease obligations, modify the terms of Omega’s mortgages, and prevent Omega’s ability to collect unpaid rent or interest for the duration of bankruptcy proceedings and to retain security deposits for debtor obligations and other costs and uncertainties associated with operator bankruptcies; (iv) Omega’s ability to re-let, transfer or sell underperforming assets or assets held for sale on a timely basis and on terms that allow Omega to realize the carrying amount of those assets; (v) the availability and cost of capital to us; (vi) changes in Omega’s credit ratings and the ratings of its debt instruments; (vii) competition in the financing of health establishments; (viii) competition in the long-term care sector and changes in perceptions of different types of long-term care facilities, including SNFs and ALFs; (ix) regulatory and other additional changes in the health sector; (x) changes in the financial situation of our operators; (xi) the effect of economic and market conditions in general, and in particular in the health sector; (xii) changes in interest rates; (xiii) the timing, amount and return of any additional investment; (xiv) changes in tax laws and regulations affecting REITs; (xv) the potential impact of changes in the SNF and ALF market or local real estate conditions on the Company’s ability to dispose of assets held for sale for the planned or timely product, or to redeploy them the product on favorable terms; (xvi) Omega’s ability to maintain its REIT status; (xvii) the effect of other factors affecting our business or the businesses of our operators that are beyond our control or their control, including natural disasters, other health crises or pandemics and government action, in particular in the healthcare industry, and (xviii) other factors identified in documents filed by Omega with the SEC. Statements regarding future events and developments and the future performance of Omega, as well as management’s expectations, beliefs, plans, estimates or projections regarding the future, are forward-looking statements.

We caution you that the foregoing list of important factors may not contain all of the material factors that are important to you. Therefore, readers should not place undue reliance on these statements. All forward-looking statements are based on information available to us as of the date of this release. We assume no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.


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