Omega Healthcare Investors closes new $2.3 billion credit facility

HUNT VALLEY, Md. - Omega Healthcare Investors, Inc. (NYSE:OHI) announced Tuesday it has closed a new $2.3 billion senior unsecured credit facility, replacing its previous $1.45 billion revolving credit facility that was set to expire in October.

The new package includes a four-year $2.0 billion revolving credit facility and a three-year $300 million delayed draw term loan facility. The company also amended its existing $428.5 million term loan agreement to reduce interest rate margins.

The revolving facility is initially priced at Term SOFR plus 1.050% based on the company’s debt ratings, plus a 0.250% facility fee. The delayed draw term loan is priced at Term SOFR plus 1.200%. Both components include extension options and an accordion feature that allows Omega to expand borrowing capacity to $3.0 billion.

The new credit facility, which was supported by over 20 financial institutions and was substantially oversubscribed, matures on September 28, 2029, with two six-month extension options. The delayed draw term loan matures on September 29, 2028, with two one-year extension options.

The amendment to the existing term loan agreement reduced pricing by 35 basis points to match the delayed draw term loan facility and removed the 0.100% pricing step-up in extension periods.

Omega Healthcare Investors is a real estate investment trust that invests in long-term healthcare facilities, primarily skilled nursing and assisted living facilities across the United States and United Kingdom. With a market capitalization of $12.9 billion and an impressive 23-year track record of consecutive dividend payments, the company currently offers a 6.45% dividend yield. InvestingPro analysis shows the company has maintained strong financial health, with liquid assets exceeding short-term obligations and revenue growth of 14% over the last twelve months.

The syndicated credit facility was arranged by multiple financial institutions, with Bank of America serving as Administrative Agent and L/C Issuer. Several other banks participated as joint lead arrangers, bookrunners, and co-syndication agents.

According to the company’s statement, Omega expects to use the credit facility for refinancing existing debt, financing acquisitions, and funding working capital and other general corporate purposes. Currently trading near its 52-week high of $44.41, InvestingPro analysis indicates the stock is fairly valued. Investors seeking deeper insights can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, which provides detailed analysis of OHI’s financial health, valuation metrics, and growth prospects among 1,400+ top US stocks.

In other recent news, Omega Healthcare Investors reported strong financial performance for the second quarter of 2025. The company’s earnings per share (EPS) were $0.46, surpassing the market forecast of $0.44, while revenue reached $283 million, exceeding the expected $240.6 million. Additionally, Omega Healthcare’s core funds from operations (FFO) were $0.77 per share, outperforming both Citizens’ estimate of $0.74 and the consensus estimate of $0.75 per share. Mizuho has raised its price target for Omega Healthcare to $40.00 from $37.00, maintaining a Neutral rating on the stock. The firm’s analysis indicates that skilled nursing facilities have already seen significant positive news reflected in their valuations. Furthermore, Omega Healthcare made a strategic investment in MedaSync to enhance the growth of AI-powered reimbursement optimization software for skilled nursing facilities. This investment is intended to accelerate the adoption of MedaSync’s technology across the sector, with customer acquisition reportedly increasing more than 100% year-over-year. Citizens analyst Aaron Hecht reiterated a Market Perform rating on Omega Healthcare following these developments.

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