Flagship Healthcare Trust, a Charlotte-based outpatient healthcare real estate investment trust, has expanded its syndicated senior revolving credit facilities arranged by Fifth Third Bank.
The $500 million senior secured credit facility has a $175 million revolving credit facility and a $325 million term loan. The facilities are secured through an equity pledge, with an unencumbered pool value of about $600 million.
“Completing the expansion and recast of this syndicated credit facility represents a major step forward in Flagship’s evolution,” J. Brannen Edge III, president and CEO of Flagship, said. “Moving to a semi-unsecured structure provides us with additional flexibility and demonstrates our lending partners’ recognition of the continued growth and strength of Flagship’s portfolio, platform and team, as well as our disciplined and prudent approach to debt financing.”
“We are proud to have led the structuring and execution of this pivotal credit facility for Flagship,” Mick Perillo, managing director, head of healthcare real estate for Fifth Third, said. “This transaction reflects not only our deep commitment to our clients, but also the strength and expertise of our team in delivering complex, strategic financing solutions. Supporting Flagship at this important stage of their growth is a privilege, and we look forward to continuing to help them achieve their long-term objectives.”
“This new $500 million credit facility marks an important milestone for Flagship as we continue to scale,” Andrew Dhionis, vice president and managing director, investments of Flagship, said. “It streamlines our capital structure, extends our debt maturity profile, reduces borrowing costs and provides us with the flexibility to pursue strategic growth through acquisitions and developments in the medical outpatient space.”
Eight other financial institutions are participating in the credit facility, with Fifth Third Bank serving as the sole bookrunner and lead arranger.
