Physicians Realty Trust closed on a $400 million term loan that will mature in May 2028.

Pursuant to the company’s unsecured credit agreement, the term loan will bear interest at a rate equal to adjusted daily simple SOFR plus a spread of between 0.85% and 1.65% that is determined based on the company’s credit rating. Concurrent with closing, the company executed $400 million of variable-to-fixed interest rate swaps that fix the variable component of the term loan at 3.59% for the duration of the borrowing. Based on the company’s current BBB credit rating and inclusive of the effects of the related swaps, the term loan bears interest at a current rate of 4.69%.

A total of seven lenders are participating in the term loan. KeyBank is acting as the administrative agent and a lender. BMO Harris Bank and Regions Bank are serving as joint lead arrangers and lenders. Bank of America and Crédit Agricole Corporate and Investment Bank are serving as documentation agents and lenders. Raymond James Bank and Associated Bank are participating as lenders.

“We appreciate our banking group and their strong support throughout the execution of this term loan. This transaction enhances our liquidity and financial flexibility by allowing us to term out our revolver, which meaningfully reduces our exposure to floating rate debt and lowers interest expense. We are pleased our banking group recognizes the strong underlying real estate performance of DOC’s outpatient medical facilities, and we are well positioned to capitalize on investment opportunities as we strive to deliver value on behalf of our shareholders,” Jeffrey N. Theiler, executive vice president and CFO of Physicians Realty Trust, said.