A Medical Device Daily

Omega Healthcare (Hunt Valley, Maryland) reported entering a new revolving senior secured credit facility effective June 30, 2009. The new credit facility replaces Omega's previous senior secured credit facility, the company noted.

The new credit facility matures on June 30, 2013, and includes an accordion feature that allows Omega to expand its borrowing capacity to $300 million during its first two years, and is currently priced at LIBOR plus 400 basis points. The new credit facility will be used for acquisitions and general corporate purposes.

Omega said that for the three-month period ending June 30, it will record a one-time, non-cash charge of about $500,000 relating to the write-off of deferred financing costs associated with the replacement of the prior credit facility. As of June 30, Omega had $46 million of borrowings outstanding under the new credit facility.

Banc of America Securities and Deutsche Bank Trust Company Americas were joint lead arrangers for the new credit facility. Bank of America was the administrative agent and UBS Securities and General Electric Capital Corp. participated in the new credit facility in various agent capacities.

Omega is a real estate investment trust investing in and providing financing to the long-term care industry.