Omega Healthcare Announces Closing of Public Offering of Common Stock


Omega Healthcare Investors, Inc. (NYSE:OHI) today announced the closing of the underwritten public offering of 7,130,000 shares of Omega common stock at $16.75 per share, less underwriting discounts. Today's sale included 930,000 shares sold in connection with the exercise of an over-allotment option granted to the underwriters. Omega received approximately $113 million in net proceeds from the sale of the shares, after deducting underwriting discounts and estimated offering expenses. Omega intends to use the net proceeds of the offering of the shares to repay indebtedness under its senior revolving credit facility.

UBS Investment Bank acted as sole book-running manager for the offering. Banc of America Securities LLC, Deutsche Bank Securities and Stifel Nicolaus acted as co-managers for the offering.

This press release shall not constitute an offer to sell nor a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

A prospectus relating to these securities has been filed with the Securities and Exchange Commission. The prospectus may be obtained from:

UBS Investment Bank
Prospectus Department
299 Park Avenue
New York, NY 10171

Omega is a real estate investment trust investing in and providing financing to the long-term care industry. At December 31, 2006, the Company owned or held mortgages on 239 SNFs and assisted living facilities with approximately 27,302 beds located in 27 states and operated by 32 third-party healthcare operating companies.

This announcement includes forward-looking statements. Actual results may differ materially from those reflected in such forward-looking statements as a result of a variety of factors, including, among other things: (i) uncertainties relating to the business operations of the operators of Omega's properties, including those relating to reimbursement by third-party payors, regulatory matters and occupancy levels; (ii) regulatory and other changes in the healthcare sector, including without limitation, changes in Medicare reimbursement; (iii) changes in the financial position of Omega's operators; (iv) the ability of operators in bankruptcy to reject unexpired lease obligations, modify the terms of Omega's mortgages, and impede the ability of Omega to collect unpaid rent or interest during the pendency of a bankruptcy proceeding and retain security deposits for the debtor's obligations; (v) the availability and cost of capital; (vi) competition in the financing of healthcare facilities; and (vii) Omega's ability to maintain its status as a real estate investment trust and to reach a closing agreement with the Internal Revenue Service with respect to the related party tenant issues described in its Form 10-K/A filed with the Securities and Exchange Commission on December 14, 2006 ("Form 10-K/A"), (viii) the impact of the material weakness identified in the management's report on internal control over financial reporting included in its Form 10-K/A, including expenses that may be incurred in efforts to remediate such weakness and potential additional costs in preparing and finalizing financial statements in view of such material weakness; and (ix) other factors identified in Omega's filings with the Securities and Exchange Commission. Completion of the offering of securities described in this press release is subject to market conditions.

Source: Omega Healthcare Investors, Inc.