Diversified Healthcare Trust amended the agreement governing its revolving credit facility and exercised its option to extend its maturity date to January 2024. The key terms of the amendment include:
- DHC extended the maturity date of its revolving credit facility to January 2024.
- The waiver of the fixed charge coverage ratio has been extended through Dec. 31, 2022.
- DHC the ability to fund up to $400 million of capital expenditures per year, an increase from the previous $350 million annual limit, and also has the ability to acquire up to an aggregate of $500 million of real property.
- The revolving credit facility commitments have been reduced from $800 million to $700 million. In January 2023, these commitments will be further reduced to $586 million.
- The interest rate premium increased by 15 basis points.
“This credit facility amendment enhances our financial flexibility as we continue 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. “We believe both the extension of the maturity date and of the waivers as well as the enhanced capacity to fund investment activities will best position our company to execute on our business plan.”
Wells Fargo Securities, Citigroup Global Markets, RBC Capital Markets and PNC Capital Markets acted as joint lead arrangers for the amendment to DHC’s revolving credit facility agreement. Wells Fargo is the administrative agent for the facility.