Healthcare Realty Trust Inc. extended the maturity of its term loan due 2019 to Dec. 16, 2022, and reduced the spread over the London Interbank Offered Rate by 10 basis points.
The company also closed several medical office building transactions, including an Atlanta portfolio acquisition.
Wells Fargo Bank NA was administrative agent for the loan, PNC Bank NA was syndication agent, and U.S. Bank NA, Fifth Third Bank and Branch Banking and Trust Co. were co-documentation agents. Bank of Montreal – Chicago Branch, First Tennessee Bank, The Bank of Nova Scotia NA and Pinnacle National Bank were additional lenders.
The company also entered into two interest rate swaps totaling $25.0 million to hedge the one-month LIBOR portion of the term loan's borrowing cost to a fixed rate of 2.18% through Dec. 16, 2022. The remainder of the loan will be subject to the variable one-month LIBOR.
Healthcare Realty said that following several transactions that closed in December, it completed the purchase of an eight-building Atlanta portfolio for $193.8 million, including assumed mortgage debt of $33.7 million.
On Dec. 18, the company acquired a medical office building for $28.8 million located on the campus of Amita Health's St. Alexius Medical Center in Chicago and a medical office building adjacent to UW Medicine's Valley Medical Center in Seattle for $8.8 million. The Chicago property is 87.9% leased and covers 99,526 square feet, while the Seattle property is 95.0% leased and comprises 32,828 square feet.
Healthcare Realty acquired 15 properties in 2017 for a total of $324.7 million.