Diversified Healthcare Trust (DHC) amended its credit facility. The key terms of the amendment include:

• The waiver of the Fixed Charge Coverage Ratio has been extended through the date of maturity January 15, 2024;
• DHC has retained the ability to fund up to $400 million of capital expenditures per year but has agreed not to make additional investments in real property with certain limited exceptions;
• The minimum liquidity requirement was decreased from $200 million to $100 million;
• The credit facility commitments have been reduced from $586.4 million to $450 million;
• The interest rate premium increased by 40 basis points; and
• In addition, among other things, DHC no longer has the ability to reborrow funds.

“This credit facility amendment provides us needed covenant relief while we continue to execute on our plan to invest capital in our properties and work with our senior living operators as they recover from the effects of the pandemic,” Jennifer Francis, President and CEO of DHC, said.

Wells Fargo Securities, RBC Capital Markets, Citibank and PNC Capital Markets acted as joint lead arrangers for the amendment to DHC’s credit agreement. Wells Fargo Bank is the administrative agent and collateral agent for the facility.