Senior Housing Properties Trust Amends $1 Billion Credit Facility and $200 Million Unsecured Term Loan
August 01 2017 - 5:51PM
Business Wire
Senior Housing Properties Trust (Nasdaq: SNH) today announced
that it has amended its existing $1 billion unsecured revolving
credit facility and simultaneously amended its $200 million
unsecured term loan that matures in 2022.
Prior to the amendment, SNH’s credit facility had a maturity
date of January 15, 2018 and required interest on drawings at LIBOR
plus 130 basis points, subject to adjustments based on changes to
SNH’s credit ratings. The maturity date of the amended credit
facility is extended to January 15, 2022 and interest on drawings
is reduced to LIBOR plus 120 basis points, subject to adjustments
based on changes to SNH’s credit ratings. In addition, the facility
fee was reduced from 30 basis points to 25 basis points per annum
on the total amount of lending commitments.
The amended credit facility includes a borrower’s option to
further extend the facility for an additional one year to January
15, 2023 in return for payment of a fee and provided certain
conditions are met. The amended credit facility also includes a
feature under which maximum borrowings may be increased to up to
$2.0 billion in certain circumstances. The previous credit
facility’s maximum borrowing availability was $1.5 billion.
Prior to the amendment, SNH’s $200 million unsecured term loan
that matures in 2022 required interest at LIBOR plus 180 basis
points, subject to adjustments based on changes to SNH’s credit
ratings. The interest rate of the amended $200 million unsecured
term loan is reduced to LIBOR plus 135 basis points, subject to
adjustments based on changes to SNH’s credit ratings.
Wells Fargo Securities, LLC, Citigroup Global Markets Inc., PNC
Capital Markets LLC and RBC Capital Markets LLC, acted as Joint
Lead Arrangers for the amended credit facility. Banks participating
in the amended credit facility are as follows:
Name of
Institution
Facility
Title
Wells Fargo Bank, N.A. Administrative Agent Citibank, N.A.
Co-Syndication Agent Royal Bank of Canada Co-Syndication Agent Bank
of America, N.A. Co-Documentation Agent PNC Bank, N.A.
Co-Documentation Agent Regions Bank Co-Documentation Agent BBVA
Compass Bank Lender Mizuho Bank, Ltd. Lender Sumitomo Mitsui
Banking Corp Lender BMO Harris Bank, N.A. Lender Morgan Stanley
Bank, N.A. Lender UBS Loan Finance LLC Lender Associated Bank, N.A.
Lender First Hawaiian Bank Lender First Tennessee Bank, N.A. Lender
Bank of Taiwan, Los Angeles Branch Lender First Commercial Bank,
New York Branch Lender Land Bank of Taiwan, Los Angeles Branch
Lender Taiwan Cooperative Bank Ltd. Seattle Lender Mega
International Commercial Bank Co. Lender Chinatrust Commercial Bank
New York Branch Lender
Wells Fargo Securities, LLC, and PNC Capital Markets LLC, acted
as Joint Lead Arrangers for the amended $200 million unsecured term
loan. Banks participating in the amended $200 million unsecured
term loan are as follows:
Name of
Institution
Term Loan
Title
Wells Fargo Bank, N.A. Administrative Agent PNC Bank, N.A.
Syndication Agent Mizuho Bank, Ltd. Documentation Agent Taiwan
Cooperative Bank Ltd. Seattle Lender First Commercial Bank, New
York Branch Lender Citibank, N.A. Lender Royal Bank of Canada
Lender First Tennessee Bank, N.A. Lender
Senior Housing Properties Trust is a real estate investment
trust, or REIT, which owns senior living communities, medical
office buildings and wellness centers throughout the United States.
SNH is managed by the operating subsidiary of The RMR Group Inc.
(Nasdaq: RMR), an alternative asset management company that is
headquartered in Newton, MA.
WARNING CONCERNING
FORWARD LOOKING STATEMENTS
THIS PRESS RELEASE CONTAINS STATEMENTS THAT CONSTITUTE FORWARD
LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995 AND OTHER SECURITIES LAWS. ALSO,
WHENEVER SNH USES WORDS SUCH AS “BELIEVE”, “EXPECT”, “ANTICIPATE”,
“INTEND”, “PLAN”, “ESTIMATE”, "WILL", “MAY” AND NEGATIVES OR
DERIVATIVES OF THESE OR SIMILAR EXPRESSIONS, SNH IS MAKING FORWARD
LOOKING STATEMENTS. THESE FORWARD LOOKING STATEMENTS ARE BASED UPON
SNH’S PRESENT INTENT, BELIEFS OR EXPECTATIONS, BUT FORWARD LOOKING
STATEMENTS ARE NOT GUARANTEED TO OCCUR AND MAY NOT OCCUR.
ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTAINED IN
OR IMPLIED BY SNH’S FORWARD LOOKING STATEMENTS AS A RESULT OF
VARIOUS FACTORS.
- CONTINUED AVAILABILITY OF BORROWINGS
UNDER THE REVOLVING CREDIT FACILITY IS SUBJECT TO SNH’S SATISFYING
CERTAIN FINANCIAL COVENANTS AND OTHER CREDIT FACILITY CONDITIONS
THAT SNH MAY BE UNABLE TO SATISFY.
- ACTUAL COSTS UNDER THE REVOLVING CREDIT
FACILITY AND $200 MILLION TERM LOAN FACILITY WILL BE HIGHER THAN
LIBOR PLUS A PREMIUM BECAUSE OF FEES AND EXPENSES ASSOCIATED WITH
SUCH FACILITIES.
- SNH HAS THE OPTION TO EXTEND THE
MATURITY DATE OF THE REVOLVING CREDIT FACILITY UPON PAYMENT OF A
FEE AND MEETING OTHER CONDITIONS; HOWEVER, THE APPLICABLE
CONDITIONS MAY NOT BE MET.
- THE PREMIUMS USED TO DETERMINE THE
INTEREST RATE PAYABLE ON THE REVOLVING CREDIT FACILITY AND $200
MILLION TERM LOAN FACILITY AND THE FACILITY FEE PAYABLE ON THE
REVOLVING CREDIT FACILITY ARE BASED ON SNH’S CREDIT RATINGS. FUTURE
CHANGES IN SNH’S CREDIT RATINGS MAY CAUSE THE INTEREST AND FEES SNH
PAYS TO INCREASE.
- THIS PRESS RELEASE STATES THAT THE
MAXIMUM BORROWING AVAILABILITY UNDER THE REVOLVING CREDIT FACILITY
MAY BE INCREASED TO UP TO $2.0 BILLION IN CERTAIN CIRCUMSTANCES;
HOWEVER, INCREASING THE MAXIMUM BORROWING AVAILABILITY UNDER THE
REVOLVING CREDIT FACILITY IS SUBJECT TO SNH’S OBTAINING ADDITIONAL
COMMITMENTS FROM LENDERS, WHICH MAY NOT OCCUR.
THE INFORMATION CONTAINED IN SNH’S FILINGS WITH THE SECURITIES
AND EXCHANGE COMMISSION, OR SEC, INCLUDING UNDER THE CAPTION
“RISK FACTORS” IN SNH’S PERIODIC REPORTS, OR INCORPORATED BY
REFERENCE THEREIN, IDENTIFIES OTHER IMPORTANT FACTORS THAT
COULD CAUSE SNH’S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE
STATED IN OR IMPLIED BY SNH’S FORWARD LOOKING STATEMENTS. SNH’S
FILINGS WITH THE SEC ARE AVAILABLE ON THE SEC’S WEBSITE AT
WWW.SEC.GOV.
YOU SHOULD NOT PLACE UNDUE RELIANCE UPON FORWARD LOOKING
STATEMENTS.
EXCEPT AS REQUIRED BY LAW, SNH DOES NOT INTEND TO UPDATE OR
CHANGE ANY FORWARD LOOKING STATEMENTS AS A RESULT OF NEW
INFORMATION, FUTURE EVENTS OR OTHERWISE.
A Maryland Real Estate Investment Trust with
transferable shares of beneficial interest listed on the Nasdaq.No
shareholder, Trustee or officer is personally liable for any act or
obligation of the Trust.
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version on businesswire.com: http://www.businesswire.com/news/home/20170801006804/en/
Senior Housing Properties TrustBrad Shepherd,
617-796-8234Director, Investor Relations
Senior Housing Properties (NASDAQ:SNH)
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