TOLEDO, Ohio--(BUSINESS WIRE)--Health Care REIT, Inc. (NYSE:HCN) announced today that it has closed a $2.0 billion unsecured revolving credit facility which replaces the existing $1.15 billion unsecured revolving credit facility that was scheduled to mature August 2012.
Health Care REIT’s new facility has a four-year term with an option to extend for an additional year at the company’s discretion. Based on HCN’s current credit ratings, the facility bears interest at LIBOR plus 135 basis points and has an annual facility fee of 25 basis points. Health Care REIT has an option to upsize the facility by up to an additional $500 million through an accordion feature, allowing for aggregate commitments of up to $2.5 billion.
“The favorable terms and additional capacity of this revolving credit facility enhances our ability to execute on our relationship investment strategy. The steady flow of future investments generated through our existing relationships will be supported by this increased financial flexibility and position us for future growth,” commented George L. Chapman, Health Care REIT’s Chairman, Chief Executive Officer and President. “This new syndicated facility reinforces our relationships with existing banking partners and formalizes new banking relationships.”
The credit facility was arranged by Merrill Lynch, Pierce, Fenner & Smith Incorporated and J.P. Morgan Securities LLC as Joint Bookrunners and Joint Lead Arrangers. Bank of America, N.A. and JPMorgan Chase Bank, N.A. were Co-Syndication Agents. KeyBanc Capital Markets Inc. was a Joint Lead Arranger and KeyBank National Association was Administrative Agent. Deutsche Bank Securities, Inc. served as a Joint Lead Arranger and Documentation Agent.
About Health Care REIT, Inc.
Health Care REIT, Inc., an S&P 500 company with headquarters in Toledo, Ohio, is a real estate investment trust that invests across the full spectrum of senior housing and health care real estate. The company also provides an extensive array of property management and development services. As of March 31, 2011, the company’s broadly diversified portfolio consisted of 727 properties in 44 states. More information is available on the company’s website at www.hcreit.com.
Forward-Looking Statements
This document may contain “forward-looking” statements as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements concern and are based upon, among other things, the possible expansion of the company’s portfolio; the sale of properties; the performance of its operators/tenants and properties; its ability to enter into agreements with viable new tenants for vacant space or for properties that the company takes back from financially troubled tenants, if any; its occupancy rates; its ability to acquire, develop and/or manage properties; its ability to make distributions to stockholders; its policies and plans regarding investments, financings and other matters; its tax status as a real estate investment trust; its critical accounting policies; its ability to appropriately balance the use of debt and equity; its ability to access capital markets or other sources of funds; and its ability to meet its earnings guidance. When the company uses words such as “may,” “will,” “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties. The company’s expectations regarding its relationship strategy, flow of future investments, financial flexibility and relationships with existing and new banking partners may not be achieved, and actual results may differ materially from expectations. This may be a result of various factors, including, but not limited to: the status of the economy; the status of capital markets, including availability and cost of capital; issues facing the health care industry, including compliance with, and changes to, regulations and payment policies, responding to government investigations and punitive settlements and operators’/tenants’ difficulty in cost-effectively obtaining and maintaining adequate liability and other insurance; changes in financing terms; competition within the health care, senior housing and life science industries; negative developments in the operating results or financial condition of operators/tenants, including, but not limited to, their ability to pay rent and repay loans; the company’s ability to transition or sell facilities with profitable results; the failure to make new investments as and when anticipated; acts of God affecting the company’s properties; the company’s ability to re-lease space at similar rates as vacancies occur; the company’s ability to timely reinvest sale proceeds at similar rates to assets sold; operator/tenant or joint venture partner bankruptcies or insolvencies; the cooperation of joint venture partners; government regulations affecting Medicare and Medicaid reimbursement rates and operational requirements; regulatory approval and market acceptance of the products and technologies of life science tenants; liability or contract claims by or against operators/tenants; unanticipated difficulties and/or expenditures relating to future acquisitions; environmental laws affecting the company’s properties; changes in rules or practices governing the company’s financial reporting; and legal and operational matters, including real estate investment trust qualification and key management personnel recruitment and retention. Finally, the company assumes no obligation to update or revise any forward-looking statements or to update the reasons why actual results could differ from those projected in any forward-looking statements.