Global Medical REIT entered into an amended and restated credit facility that extends the maturities of its borrowings and, among other things, includes the following terms:
- Extends the initial maturity date of the existing $400 million revolver component of the credit facility to October 2029 with two, six-month extension options available at the company’s election to extend the maturity to October 2030
- Extends the maturity of the existing $350 million Term Loan A, dividing it into three term loans structured as follows:
- $100 million term loan maturing in October 2029 (A-1);
- $100 million term loan maturing in October 2030 (A-2)
- $150 million term loan maturing in April 2031 (A-3)
- Removes the previous 0.10% (10 basis point) secured overnight financing rate (“SOFR”) credit spread adjustment on all credit facility borrowings.
The credit facility’s pricing grid, $150 million term loan B that matures in February 2028, and $500 million accordion remain unchanged.
In connection with the amended and restated credit facility, the company entered into $350 million of forward starting interest rate swaps to fully hedge the SOFR component of the three Term Loan A tranches through their respective maturities.
The existing $350 million term loan A fixed rate SOFR swaps remain in place, resulting in an all-in fixed interest rate of 2.85% on this debt through the swap maturities in April 2026.
At closing of the amended and restated credit facility, the weighted average term of the company’s debt, including the drawn revolver component, was 4.4 years.
The joint lead arrangers and joint book runners for the facility were JPMorgan Chase Bank, BMO Capital Markets, Wells Fargo Securities, Citizens Bank, Huntington National Bank and Truist Securities. JPMorgan Chase Bank serves as administrative agent; BMO Capital Markets and Wells Fargo Bank serve as syndication agents; Citizens Bank, Huntington National Bank and Truist Bank serve as documentation agents. Associated Bank, Raymond James Bank and Stifel Bank & Trust also participated in the credit facility.
