Daily News: December 26, 2013

Wells, Others Arrange Term Loan for NHI Acquisition

National Health Investors announced it completed the purchase of 25 independent living facilities from Holiday Acquisition Holdings, an affiliate of Holiday Retirement, for $491 million plus transaction costs. The acquisition was funded with cash and $250 million from a new term loan related to NHI’s updated and amended senior unsecured bank credit facility.

Wells Fargo Bank, BMO Capital Markets, Bank of America, Merrill Lynch, Pierce, Fenner & Smith and KeyBank served as arrangers and agents to amend the existing credit facility and expand the syndicate of banks to provide the new term loan.

The facilities will continue to be operated by affiliates of Holiday Retirement pursuant to a new 17-year master lease. The new term loan provides for interest of 175 basis points over LIBOR and matures in June 2018, which is a reduction from the previously disclosed pricing of 225 basis points over LIBOR.

On November 27, 2013, NHI received $282 million in net proceeds from a public offering of 5,175,000 shares of NHI’s common stock.

Justin Hutchens, NHI’s CEO and president, noted, “The acquisition of these 25 independent living communities provides substantial geographic, asset class and operator diversification on a very accretive basis. We were able to conservatively fund the acquisition with strong execution on the equity offering and better-than-expected pricing on our new term loan tranche. These transactions will be instrumental in supporting our growth in 2014.”

National Health Investors is a healthcare real estate investment trust specializing in financing healthcare real estate by purchase and leaseback transactions, RIDEA transactions and mortgage loans.