Sun Healthcare spinoff to offer $225M in notes
Health care facility operator Sun Healthcare Group Inc. said Friday that its spinoff company Sabra Health Care REIT Inc. plans to offer $225 million in senior notes due 2018 in a private offering.
Sun Healthcare is separating into two separate companies. Sabra Health Care will own all of the company's real estate assets, while Sun Healthcare will own all the operating subsidiaries.
The company plans to place the proceeds from the offering to redeem Sun Healthcare's existing 9.125 percent senior subordinated notes due 2015.
Shares of Sun Healthcare edged up 3 cents to $8.50 in afternoon trading.