Omega Healthcare Investors Inc.'s $400 Million Senior Unsecured Note Issuance Rated 'BBB-'

NEW YORK (Standard&Poor's) March 11, 2015--Standard&Poor's Ratings Services today assigned its 'BBB-' issue-level rating to Omega Healthcare Investors Inc.'s $400 million senior unsecured notes due 2027. The recovery rating on this debt is '2', indicating our expectations for substantial recovery (lower end of the 70%-90% range) in the event of default. Our 'BB+' corporate credit rating and stable outlook are unchanged. Omega intends to use the proceeds from this debt issuance for general corporate purposes, which may include repayment of Aviv REIT Inc.'s debt in connection with the previously announced merger with Aviv, repayment of future maturities on Omega's outstanding debt, or future acquisitions. The indenture governing the notes contains covenants typical of U.S. equity REITs

...NEW YORK (Standard & Poor's) March 11, 2015--Standard & Poor's Ratings Services today assigned its '###-' issue-level rating to Omega Healthcare Investors Inc.'s $400 million senior unsecured notes due 2027. The recovery rating on this debt is '2', indicating our expectations for substantial recovery (lower end of the 70%-90% range) in the event of default. Our '##+' corporate credit rating and stable outlook are unchanged. Omega intends to use the proceeds from this debt issuance for general corporate purposes, which may include repayment of Aviv REIT Inc.'s debt in connection with the previously announced merger with Aviv, repayment of future maturities on Omega's outstanding debt, or future acquisitions. The indenture governing the notes contains covenants typical of U.S. equity REITs including a limitation on total debt (less than 60% of total assets) and secured debt (less than 40% of total assets) as well as a minimum debt service coverage requirement (greater than 1.5x) and maintenance...

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