Chartwell Retirement Residences entered into agreements with a syndicate of Canadian financial institutions, led by Bank of Montreal and TD Bank for two new credit facilities totaling $300 million with accordion options for an additional $150 million.

The new credit facilities replace the existing $200 million and $50 million credit facilities maturing in June 2018.

“These new credit facilities provide us with increased flexibility to execute on our strategic priorities,” commented Vlad Volodarski, CFO and chief investment officer.

The credit facilities have three-year terms maturing in May 2020 and will include annual extension options.

The $200 million secured facility can be increased by up to $100 million during the term. The facility is secured by charges over 20 properties. The amounts borrowed under the secured facility will bear interest at rates ranging from BA plus 165 bps points to BA plus 185 bps or, Prime plus 65 bps to Prime plus 85 bps, based on Chartwell’s overall leverage ratio, as defined in the credit agreement.

Chartwell also closed a $100 million unsecured facility which can be increased by up to $50 million during the term.

They include covenants generally applicable to such facilities, such as limitations on overall leverage ratio, debt service coverage ratio, distributions payout ratio and, in the case of the unsecured facility, secured indebtedness ratio and unencumbered asset value ratio.

Chartwell is an unincorporated, open-ended trust which indirectly owns and operates a complete range of seniors housing communities from independent supportive living through assisted living to long term care. It is the largest owner and operator of seniors residences in Canada.