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Omega Authorizes $100 Million Stock Repurchase Program

^{Published on 2011-08-30 13:56:39 - Market Wire}
 

HUNT VALLEY, Md.--([ BUSINESS WIRE ])--Omega Healthcare Investors, Inc. (NYSE:OHI), announced today that its Board of Directors has authorized the repurchase of up to $100 million of its outstanding common stock, from time to time over the next 12 months. As of August 30, 2011, Omega had approximately 103 million shares of common stock outstanding.

Omega is authorized to repurchase shares of its common stock in open market and privately negotiated transactions or in any other manner as determined by Omegaa™s management and in accordance with applicable law. The timing and amount of stock repurchases will depend on a variety of factors, including market conditions and corporate and regulatory considerations. The Company has no obligation to repurchase any amount of its common stock, and such repurchases, if any, may be discontinued at any time.

The stock repurchase program will be funded using borrowings under Omegaa™s new $475 million unsecured revolving credit facility.

Omega is a real estate investment trust investing in and providing financing to the long-term care industry. At June 30, 2011, Omega owned or held mortgages on 398 skilled nursing facilities, assisted living facilities and other specialty hospitals with approximately 46,126 licensed beds (44,376 available beds) located in 35 states and operated by 50 third-party healthcare operating companies. In addition, Omega has two facilities currently held for sale.

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 Omegaa™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; (iii) changes in the financial position of Omegaa™s operators; (iv) the ability of any of Omegaa™s operators in bankruptcy to reject unexpired lease obligations, modify the terms of Omegaa™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) changes in Omegaa™s credit ratings and the ratings of its debt securities; (vii) competition in the financing of healthcare facilities; (viii) Omegaa™s ability to maintain its status as a real estate investment trust; (ix) Omegaa™s ability to manage, re-lease or sell any owned and operated facilities; (x) Omegaa™s ability to sell closed or foreclosed assets on a timely basis and on terms that allow Omega to realize the carrying value of these assets; (xi) the effect of economic and market conditions generally, and particularly in the healthcare industry; and (xii) other factors identified in Omegaa™s filings with the Securities and Exchange Commission. Statements regarding future events and developments and Omegaa™s future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements.Omega undertakes no obligation to update any forward-looking statements contained in this announcement.