ITEM
2.03
|
CREATION
OF DIRECT FINANCIAL OBLIGATION
|
Providence
HR, LLC
Providence
of Sparta Health And Rehab
On
October 24, 2017, Global Healthcare REIT, Inc. (the “Company”), through its wholly-owned subsidiary Providence HR,
LLC consummated a HUD refinancing of its senior mortgage on its skilled nursing facility in Sparta, Georgia. Funding was provided
by Greystone Funding Corporation pursuant to a secured Healthcare Facility Note in the principal amount of $3,039,300 (the “HUD
Note”).
Proceeds
from the HUD Note were used to pay off an existing senior mortgage and certain unsecured debt. The interest rate on the HUD Note
is 3.88%, fixed for the full term of the HUD Note. Payments of principal and interest begin on December 1, 2017 until the Note
is paid in full on November 1, 2047 (the “Maturity Date”). The Note is secured by a Healthcare Deed to Secure Debt,
Security Agreement and Assignment of Rents. A copy of the Note is filed herewith as Exhibit 10.1.
High
Street Nursing, LLC
Meadowview
Care Center
Effective
October 30, 2017, the Company, through its wholly-owned subsidiary High Street Nursing, LLC consummated a refinancing of its senior
loan on its skilled nursing facility in Seville, Ohio with ServisFirst Bank pursuant to Term Note in the principal amount of
$3,000,000 (the “Meadowview Note”).
Proceeds
from the Meadowview Note were used to pay off an existing senior loan. The interest rate on Meadowview Note is 6.0%. Monthly payments
of interest only begin on November 30, 2017 until January 2018, at which time monthly payments of principal and accrued interest
shall be due until the Meadowview Note is paid in full on October 30, 2022 (the “Maturity Date”). The Note is secured
by an Open-End Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Filing (the “Mortgage”). A
copy of the Meadowview Note is filed herewith as Exhibit 10.2.
Southern
Tulsa, LLC
Southern
Tulsa TLC, LLC
Southern
Hills Rehabilitation Center (“SNF”)
Southern
Hills Independent Living Facility (“ILF”)
Southern
Hills Assisted Living Facility (“ALF”)
Effective
October 31, 2017, the Company, through its wholly-owned subsidiaries Southern Tulsa, LLC and Southern Tulsa TLC, LLC, as Co-Borrowers,
consummated a new Line of Credit with First Commercial Bank pursuant to a Promissory Note in the principal amount of $7,229,051.52
(the “Line of Credit”). Under the Line of Credit, the Company will refinance the existing mortgage on its skilled
nursing facility in Tulsa, Oklahoma, fund the outstanding reverse Dutch tender offer on the Industrial Revenue Bonds covering
the ALF and ILF, and for working capital, including improvements to the ALF and ILF.
The
interest rate on Line of Credit is 5.25%. Monthly payments of interest only begin on November 30, 2017 until the Promissory Note
is paid in full on April 30, 2018 (the “Maturity Date”). The Credit Note is secured by a First Mortgage and Assignment
of Rents on Real Property for Southern Hills Rehabilitation Center, a Junior Lien and Assignment of Rents on Real Property for
it Southern Hills Independent Living Facility location and a Junior Lien on Real Property for its Southern Hills Assisted Living
Facility location. A copy of the Credit Note is filed herewith as Exhibit 10.3.