American Realty Capital Healthcare Trust III closed the sale of substantially all of its assets to Healthcare Trust Inc. and declared an initial liquidating distribution of $15.75 per common share.
ARC Healthcare Trust III's shareholders approved the asset sale and the plan of liquidation at the company's Dec. 21 annual meeting.
The initial liquidating distribution, which forms part of the net cash proceeds from the asset sale, will be paid on or about Jan. 5, 2018, to stockholders of record at the close of business on Dec. 22.
Separately, Healthcare Trust obtained roughly $45.0 million of loans under its senior secured credit facility with KeyBank NA to partly fund the asset purchase from ARC Healthcare Trust III.
The company added 15 properties, including 14 of the 19 properties purchased from ARC Healthcare Trust III, to the pool of eligible unencumbered real estate assets comprising the borrowing base under its revolver, thereby boosting the borrowing capacity to $298.6 million from $241.0 million.
The loans carry annual interest at a rate of 3.12%, representing the London Interbank Offered Rate plus the applicable margin under the revolver, which provides for borrowings up to $565.0 million.
The revolver also contains a sub-facility for letters of credit of up to $25.0 million and an accordion feature to allow Healthcare Trust to increase its aggregate borrowings to a maximum of $750.0 million.
SunTrust Robinson Humphrey Inc. was the exclusive financial adviser to ARC Healthcare Trust III's special committee of independent directors on the asset sale, with Shapiro Sher Guinot & Sandler serving as legal counsel to the company's special committee.
KeyBanc Capital Markets Inc. was the exclusive financial adviser to Healthcare Trust's special committee of independent directors, while Arnold & Porter Kaye Scholer LLP served as legal counsel to its special committee.
Proskauer Rose LLP was the outside legal counsel to both Healthcare Trust and ARC Healthcare Trust III.