03-24-14 National Health Investors (NHI)

$175m (+25m) sen unsec cb coming tonight from MER/JPM. Terms: 7y 3¼-3¾% up 17½-22½%, full pctns. UOP=repay facility/gcp. $2bn Health care REIT primarily in l/term care & sen/housing. ’13 was busy; JV w/Bickford sen/living, acq of Inn at Halcyon Village &

25 living facilities from Holiday acq holdings etc. NHC=largest customer (leases 41 facilities). PFcash=11.3m debt=625.1m (all sec except CB), LTMebitda=110, lev=5.7x. $370m ’18 t/loan=L+175, sctr trades tight so we’ll use L+275 for 7y unsec. ADV=low 127k, no leaps, 1y 250d=21,100d=18,To re-iterate, this is 7y=we’d cap vol @ 18%. Theo=98.55/100.6/102.6. REIT space under allocated & rolling off so issuance is good HOWEVER, would prefer to see 5y vs 7y structure. Not great in model BUT will get done at a px.

Post a comment or leave a trackback: Trackback URL.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>