Extends Maturity Date of Revolving Credit Facility to January 2024
Extends Waivers of Certain Financial Covenants Through December 31, 2022
Increases Flexibility to Fund Investment Activities
NEWTON, Mass., February 23, 2022–(BUSINESS WIRE)–Diversified Healthcare Trust (Nasdaq: DHC) today announced that it has amended the agreement governing its revolving credit facility and exercised its option to extend its maturity date to January 2024. The key terms of the amendment include:
DHC has extended the maturity date of its revolving credit facility to January 2024;
The waiver of the Fixed Charge Coverage Ratio has been extended through December 31, 2022;
DHC has the ability to fund up to $400 million of capital expenditures per year, an increase from the previous $350 million annual limit, and also has the ability to acquire up to an aggregate of $500 million of real property;
The revolving credit facility commitments have been reduced from $800 million to $700 million. In January 2023, these commitments will be further reduced to $586 million; and
The interest rate premium increased by 15 basis points.
Jennifer Francis, President and Chief Executive Officer of DHC, made the following statement:
“This credit facility amendment enhances our financial flexibility as we continue to invest capital in our properties and work with our senior living operators as they recover from the effects of the pandemic. We believe both the extension of the maturity date and of the waivers as well as the enhanced capacity to fund investment activities will best position our company to execute on our business plan.”
Wells Fargo Securities, LLC, Citigroup Global Markets Inc., RBC Capital Markets and PNC Capital Markets, LLC acted as Joint Lead Arrangers for the amendment to DHC’s revolving credit facility agreement. Wells Fargo Bank, National Association is the Administrative Agent for the facility.
Diversified Healthcare Trust (Nasdaq: DHC) is a real estate investment trust (REIT) that owns more than $6.6 billion of high-quality healthcare properties located in 36 states and Washington, D.C. DHC seeks diversification across the health services spectrum: by care delivery and practice type, by scientific research disciplines and by property type and location. DHC’s life science and medical office portfolio includes over 110 properties totaling approximately nine million square feet and is occupied by nearly 500 tenants. DHC’s senior living portfolio contains over 27,500 senior living units. DHC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with more than $33 billion in assets under management and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. DHC is headquartered in Newton, MA. To learn more about DHC, visit www.dhcreit.com.