The newly issued notes will be made available in a private offering to qualified institutional investors (generally brokerages and money managers) and some foreign entities, which allows the real estate investment trust to avoid registering the debt with the SEC in accordance with the more comprehensive Securities and Exchange Act of 1933. Aviv did file a Form 8-K with the SEC announcing its intention to issue the notes.
The proceeds from the debt offering, according to Aviv, will be used pay down the outstanding balance of its $400 million credit facility with Bank of America, with the remaining funds used for "general corporate purposes, including the potential acquisition of additional properties."
Aviv did not disclose specific terms of the issuance beyond the 2021 maturity date. The qualified institutions that purchase the senior notes will be required to register the debt prior to offering it to the investing public.
Aviv is one of the largest skilled nursing facility owners in the U.S. with 269 properties in 29 states, according to the company.
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