Healthcare Realty Trust Inc. amended an existing credit agreement to provide for a new $700 million unsecured revolving credit facility with an extended due date of May 31, 2023, and to lower the applicable margin over the London interbank offered rate by 10 basis points, among other things.
The amended credit facility comes with a $90 million sublimit for standby letters of credit and a $60 million sublimit for swingline loans. It will bear an interest rate equal to Libor plus an applicable margin rate ranging from 0.775% to 1.45% per year, depending on the company's credit ratings.
The healthcare real estate investment trust said the former $700 million credit facility due 2020 was repaid in full, with $298 million being transferred to the new credit facility.
Additionally, the REIT amended an existing term loan agreement mainly to boost the loan amounts to $200 million, to extend the maturity date from 2022, and to trim the applicable margin over Libor for the existing loans by 10 basis points.
The senior unsecured term loan facility, as amended, comprises a $200 million tranche A term loan due May 31, 2024, and a $150 million tranche B term loan due June 1, 2026. The tranche A term loan was fully drawn with $200 million outstanding on May 31, and no loans were outstanding under the tranche B term loan at such date. The annual margin rates for the tranche A and B term loans range from 0.85% to 1.65% and 1.45% to 2.40%, respectively, in each case subject to the REIT's credit ratings.
The REIT applied the proceeds from the term loan to the credit facility at closing, resulting in balances of $253 million on the credit facility and $200 million on the term loan.
The lenders under the amended credit facility include Wells Fargo Bank NA as administrative agent; Wells Fargo Securities LLC and JPMorgan Chase Bank NA as joint book runners; Wells Fargo Securities, JPMorgan Chase, U.S. Bank NA and PNC Capital Markets LLC as joint lead arrangers; JPMorgan Chase, U.S. Bank and PNC Bank NA as co-syndication agents.
The lending syndicate under the amended term loan includes Wells Fargo Bank as administrative agent; PNC Bank and U.S. Bank as syndication agents; Bank of Montreal, Fifth Third Bank and Branch Banking and Trust Co. as documentation agents for the tranche A term loan; and Bank of Montreal and Fifth Third Bank as documentation agents for the tranche B term loan. Wells Fargo Securities, PNC Capital Markets and U.S. Bank served as joint lead arrangers and joint book runners under the term loan.