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Sabra Health Care REIT, Inc. Announces Pricing of Public Offering of $350.0 Million of 3.900% Senior Notes due 2029 by Certain of Its Subsidiaries
IRVINE, Calif.--(BUSINESS WIRE)-- Sabra Health Care REIT, Inc. (“Sabra”) (Nasdaq: SBRA) today announced that its subsidiaries, Sabra Health Care Limited
About this update from Sabra Health Care Reit, Inc.
[{"type":"text","content":" IRVINE, Calif.--(BUSINESS WIRE)--\nSabra Health Care REIT, Inc. (“Sabra”) (Nasdaq: SBRA) today announced that its subsidiaries, Sabra Health Care Limited Partnership (the “Partnership”) and Sabra Capital Corporation (“Sabra Capital” and, together with the Partnership, the “Issuers”), have priced and entered into an agreement to issue and sell, subject to certain conditions, $350.0 million aggregate principal amount of 3.900% senior notes due 2029 (the “Notes”) pursuant to an effective registration statement on Form S-3 filed with the Securities and Exchange Commission (the “SEC”) under the Securities Act of 1933, as amended, on January 17, 2017, as amended by Post-Effective Amendment No. 1, filed with the SEC on May 21, 2019. Sabra expects to close the offering on October 7, 2019, subject to the satisfaction of customary closing conditions and the delivery by the Issuers prior to closing of an irrevocable notice of redemption for all of their outstanding 5.375% senior notes due 2023 (the “2023 Notes”), which the Issuers intend to do.\n\n\nThe Notes will be fully and unconditionally guaranteed on a senior unsecured basis by Sabra. Sabra Capital’s obligations as a co-issuer of the Notes will be automatically released and discharged when Sabra Capital is not liable in respect of any obligations under the Issuers’ 2023 Notes and 4.80% senior notes due 2024 (the “2024 Notes”). Upon redemption of the 2023 Notes, Sabra Capital’s obligations under the 2024 Notes will be automatically released and discharged, thereby releasing its obligations as a co-issuer of the Notes.\n\n\nSabra intends to use a portion of the net proceeds from the offering of the Notes to redeem all of the 2023 Notes and the remaining net proceeds to repay borrowings outstanding on Sabra’s unsecured revolving credit facility. Prior to redeeming the 2023 Notes, Sabra may temporarily use net proceeds designated for such redemption to repay borrowings outstanding on its unsecured revolving credit facility and/or invest in interest-bearing accounts and short-term, interest-bearing securities.\n\n\nIn connection with the offering, Wells Fargo Securities, LLC, Morgan Stanley & Co. LLC, SMBC Nikko Securities America, Inc., BBVA Securities Inc., Fifth Third Securities, Inc., Mizuho Securities USA LLC, MUFG Securities Americas Inc. and Scotia Capital (USA) Inc. are acting as...