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HCP upsizes revolver to $2.5B, lands new $250M term loan facility

HCP Inc. closed an amended and restated credit agreement providing for a $2.5 billion unsecured revolving credit facility, increased from $2.0 billion, and a new $250 million unsecured term loan facility.

The healthcare real estate investment trust said it has an option to increase its borrowing capacity under the credit facilities by up to an additional $750 million, for a maximum of $3.5 billion. The amendment also extends the maturity date of the revolver to May 23, 2023, with two six-month extension options, and reduces the company's borrowing costs.

As of closing, the revolver bears interest at a per-annum rate equal to the London Inter-bank Offered Rate plus 82.5 basis points and has a facility fee on the entire revolving commitment of 15 basis points per year. The term loan facility includes a 90-day delayed-draw feature, with any loans drawn during the period set to mature May 23, 2024.

As of closing, the interest rate applicable to the term loan facility would have been a per-annum rate equal to LIBOR plus 90 basis points. HCP noted that the facility was undrawn at closing.

BofA Securities Inc., JPMorgan Chase Bank NA and Wells Fargo Securities LLC arranged the credit facilities, with BofA Securities and JPMorgan as joint book runners.

Bank of America NA was the administrative agent, while JPMorgan and Wells Fargo Bank NA were the co-syndication agents.