Buying more. I do not think they will cut the divi. Have made more than enough to cover it. If they do anything maybe they would not raise it? In any case, securing another $700m due in 2023 is not a bad thing and now I am thinking...who are they buying?
On July 12, 2016, Omega Healthcare Investors, Inc. (“Omega”) issued $700 million aggregate principal amount of Omega’s 4.375% Senior Notes due 2023 (the “2023 Notes”) pursuant to an indenture dated as of July 12, 2016 among Omega, certain of its subsidiaries, as guarantors, and U.S. Bank National Association, as trustee (the “Trustee”). The offering was made pursuant to Omega’s automatic shelf registration statement on Form S-3 (Registration No. 333- 208710) and related free writing prospectus, preliminary prospectus supplement and prospectus supplement filed with the Securities and Exchange Commission.
The 2023 Notes mature on August 1, 2023. The 2023 Notes bear interest at a rate of 4.375% per annum, payable semi-annually in cash in arrears on February 1 and August 1 of each year, commencing on February 1, 2017. The 2023 Notes are fully and unconditionally guaranteed, jointly and severally, by Omega’s existing and future subsidiaries that guarantee indebtedness for money borrowed of Omega in a principal amount at least equal to $50 million (including as of the date hereof, Omega’s existing senior notes and the facilities under Omega’s credit agreements).
The 2023 Notes are Omega’s unsecured senior obligations and rank equally in right of payment with all of Omega’s existing and future senior debt and senior in right of payment to all of Omega’s existing and future subordinated debt. The 2023 Notes are effectively subordinated in right of payment to any of Omega’s existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness. The 2023 Notes are structurally subordinated to all existing and future liabilities (including indebtedness, trade payable and lease obligations) of each of Omega’s non-guarantor subsidiaries.
Omega may redeem some or all of the notes prior to June 1, 2023 at a price equal to 100% of the principal amount thereof plus a “make-whole” premium calculated by reference to U.S. treasuries w