Skilled Healthcare Group, Inc. (NYSE: SKH) announced this week that it has entered into a $360 million term loan and a $100 million revolving credit facility that replace the senior secured term loan and revolving credit facility that were set to mature in June 2012. The new revolving credit facility was undrawn at closing.
The new term loan and revolving credit facility will have an interest rate of LIBOR plus 3.75% subject to a LIBOR floor of 1.50%. The commitment fee for the unused portion of the revolving credit facility is 0.50%. The new revolving credit facility matures in April 2015 and the new term loan matures in April 2016.
Boyd Hendrickson, Chairman and CEO, noted, "The new term loan and revolving credit facilities are a positive development for the Company. The refinancing will extend the weighted average maturity of our debt to over five years and, together with the Company’s strong free cash flow, create additional flexibility to fund the Company’s future growth. Our significant real property ownership, which will continue to collateralize the loan, was an important factor in our ability to secure attractive financing terms."