Diversified Healthcare Trust Defaults on $450 Million Credit Facility
June 29 2023 - 9:09AM
Dow Jones News
By Dean Seal
Diversified Healthcare Trust disclosed Thursday a nonmonetary
default under its $450 million credit facility due to insufficient
collateral value.
The facility requires the healthcare-focused real estate
investment trust to maintain collateral properties with an
aggregate appraised value of at least $1.09 billion, Diversified
said.
On June 23, an administrative agent notified Diversified that
the reappraised value of properties securing the facility had
fallen to $1.05 billion from $1.34 billion. That's a 22% drop since
they were last appraised in January 2021.
Diversified is negotiating with lenders for a limited waiver of
the default through September 30, which is the outside closing date
of a pending merger with Office Properties Income Trust that would
fully refinance the $450 million facility.
For the time being, Diversified can't issue any new debt or
refinance expiring debt.
Diversified said the best alternative available to it is the
merger with Office Properties.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
June 29, 2023 08:54 ET (12:54 GMT)
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