Sabra Health Care Limited Partnership, a subsidiary of Irvine, CA-based Sabra Health Care REIT, announced Tuesday that it has priced and entered into an agreement to issue and sell $800 million aggregate principal amount of 3.2% senior notes due 2031.
Sabra expects to close the offering Sept. 30. The company will use a portion of the net proceeds to redeem the 2024 notes, repay approximately $345 million in term loans maturing on Sept. 23, 2023, and for general corporate purposes.
“Prior to these uses, Sabra may temporarily use net proceeds designated for such purposes to repay borrowings outstanding on its unsecured revolving credit facility and/or invest in interest-bearing accounts and short-term, interest-bearing securities,” the REIT stated.
Fitch Ratings rates the senior unsecured notes BBB. Sabra’s outlook is stable, according to Fitch, with a leverage ratio of 5.5x, “following management’s demonstrated commitment to its financial policies and firm response to the financial implications from the coronavirus pandemic.” According to Fitch, Sabra has the “headroom to withstand pandemic headwinds.” Although the industry has been hard hit throughout the pandemic, Sabra’s rent collections are solid and occupancies have partially rebounded, the credit rating agency said.
