Omega Healthcare Investors Inc. received court approval to begin transitioning 23 of the 42 Omega facilities operated by its bankrupt tenant, Orianna, to new operators, and to solicit competing proposals for the sale or restructuring of the remaining 19 facilities.
The court also approved the $30 million debtor-in-possession financing that Omega provided Orianna, which was used to fully repay Orianna's working capital and to give Orianna extra liquidity for ongoing business operations.
Separately, Omega and operator Signature Healthcare entered into an out-of-court restructuring agreement May 7, in which Signature separated its portfolio of properties with Omega into the holding company Agemo.
As part of that restructuring agreement, Omega agreed to defer up to $6.3 million in rent per year for three years, starting May 1; provide roughly $4.5 million of capital expenditure funds per year for three years, for the maintenance and improvement of 59 facilities; extend a 7% working capital term loan for up to $25 million, with a maturity of April 30, 2025; extend the maturity of an existing term loan to Dec. 31, 2024; and extend the master lease by two years to Dec. 31, 2030.
Signature Healthcare also secured a new working capital credit facility with its new lender for Agemo.
