TIMONIUM, MD-With GE Healthcare Financial Services paving the way, long-term care REIT Omega Healthcare Investors Inc. has closed on a whopping $225 million senior secured credit facility consisting of a $125 million loan and a $100 million revolving credit line. The facility is for a four-year term and gives Omega the opportunity to extend the deal for an additional year. “The company has an experienced management team, well-diversified healthcare portfolio and improving collateral performance,” says GE Healthcare Financial senior vice president Kevin McMeen. “We were able to provide a flexible, creative financing structure, approve the deal in less than 30 days and close it shortly thereafter.”

The funds will be used for a variety of purposes, including the refinancing of two of the company’s previous revolving credit facilities. One of those pre-existing credit facilities is with Fleet National Bank for $160 million–originally, $175 million–and is scheduled to expire in December of this year. The other is for $65 million–originally $75 million, until the company prepaid $10 million of the sum in late 2001–and expires at the end of June in 2005. Other monies from the new $225 million credit facility will be steered toward issuing letters of credit, paying accrued preferred dividends and handling other general corporate obligations. “This financing significantly extends Omega’s maturing debt, while providing Omega with broad flexibility in managing the current portfolio, making decisions regarding dividend reinstatement and providing for future growth opportunities,” Omega CEO Taylor Pickett says.

As of the end of the first quarter, Omega owns or holds mortgages on 221 skilled nursing and assisted-living locales across 28 states in the US. According to the REIT’s most recent quarterly report to the Securities and Exchange Commission, its real estate property assets total just over $715 million.

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