Omega Healthcare Investors redeems $600 million in senior notes due 2026

Omega Healthcare Investors Inc. (NYSE:OHI), a healthcare REIT with a market capitalization of $12.3 billion and a strong financial health score according to InvestingPro, redeemed all of its $600 million aggregate principal amount of 5.250% senior notes due 2026 on Wednesday. According to a statement based on a filing with the Securities and Exchange Commission, the company deposited $607.88 million with U.S. Bank Trust Company, National Association, the trustee, for payment of the redemption price. The amount paid included 100% of the principal plus accrued and unpaid interest up to, but not including, the redemption date. With a current ratio of 1.35, the company maintains strong liquidity to meet its short-term obligations.

The notes were originally issued under an indenture dated September 23, 2015, as amended and supplemented, among Omega, certain subsidiaries as guarantors, and U.S. Bank Trust Company as trustee. The company has maintained its dividend payments for 23 consecutive years, currently offering a 6.8% yield. Get detailed insights and Fair Value analysis with InvestingPro, which offers comprehensive research reports for over 1,400 US stocks.

On September 15, the trustee notified noteholders of Omega’s intention to redeem the notes on October 15. With the completion of the redemption, Omega’s obligations and those of its subsidiary guarantors under the notes, the related indenture, and subsidiary guarantees were terminated. The indenture was discharged, though customary provisions related to trustee compensation, indemnification, and application of trust money remain in effect.

U.S. Bank Trust Company has previously provided corporate trust services to Omega and may continue to do so in the future.

This information is based on a press release statement and an SEC filing.

In other recent news, Omega Healthcare Investors reported core funds from operations (FFO) of $0.77 per share for the second quarter of 2025, surpassing both Citizens’ estimate of $0.74 and the consensus estimate of $0.75 per share. This outperformance was mainly due to "other investment income." In a strategic move, Omega Healthcare has closed a new $2.3 billion senior unsecured credit facility, which includes a four-year $2.0 billion revolving credit facility and a three-year $300 million delayed draw term loan facility, replacing its previous $1.45 billion revolving credit facility. Additionally, the company amended its existing $428.5 million term loan agreement to reduce interest rate margins.

Omega Healthcare has also made a strategic investment in MedaSync to enhance AI reimbursement software growth, aiming to accelerate technology adoption in the skilled nursing sector. The Cleveland-based MedaSync reports a more than 100% increase in customer acquisition year-over-year. Meanwhile, Cantor Fitzgerald initiated coverage on Omega Healthcare with an Overweight rating and a $50.00 price target, citing the company’s capital allocation skills. Mizuho raised its price target on Omega Healthcare to $40.00 from $37.00 while maintaining a Neutral rating, noting the significant positive news already reflected in skilled nursing facilities’ valuations. Citizens analyst Aaron Hecht reiterated a Market Perform rating on the stock following the company’s recent earnings results.

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