The show must go on.
During the past week on Wall Street, when chaos reigned supreme, the financial landscape was bleak. Credit markets had nearly shut down and early in the week, stocks were in free-fall.
That didn’t stop Omega Healthcare Investors Inc. In what Powell Goldstein partner Eliot Robinson said he believes was the only public stock offering last week, Omega sold 6 million shares of common stock, raising about $97 million.
“I’ve dealt with a variety of challenging market environments” in the past when advising other clients, Robinson said. “But I don’t think I’ve ever involved with one like the one from last week.”
Omega, of Timonium, Md. plans to use the proceeds to repay debt, for working capital and for general corporate purposes. Omega is a real estate investment trust that invests in healthcare properties, primarily long-term care facilities located in the U.S.
Omega’s underwriter, UBS Securities LLC, was watching the markets closely, and there were discussions with Omega about whether to bail out, but UBS eventually decided to go forward with it, Robinson said. One reason is that the market for healthcare REITs has been relatively stable as of late, he said.
PoGo associates Terry Childers and Jody Arogeti joined Robinson on the transaction. Skadden, Arps, Slate, Meagher & Flom advised UBS.