Senior Housing Finance Activity: Health Care REIT, LTC Properties, Cambridge Realty (5/31/2012)

Health Care REIT Closes New $250 Million Canadian Loan with Accordion Feature

Health Care REIT, Inc. (NYSE:HCN) announced on Thursday, May 24 that it had closed on a $250 million Canadian denominated unsecured term loan (approximately $244 million in U.S. dollars). The loan is coterminous with the REIT’s $2 billion (USD) unsecured revolving credit facility, and matures July 27, 2015 with an option to extend for another year if desired.

The loan will serve as a “natural currency hedge” with respect to HCN’s recent joint venture acquisition with Canadian Chartwell Seniors Housing REIT of 42 senior housing communities in Canada. 


Based on HCN’s current credit ratings, the term loan has an initial interest rate at the Canadian DOllar banker’s acceptance rate plus 145 basis points. HCN has the option to increase the loan up to $500 million (in Canadian dollars) through an accordion feature.

J.P. Morgan Securities, LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, and RBS Capital Markets arranged the term loan, with KeyBank National Association as the administrative agent. 

LTC Properties Amends Revolving Credit Facility, Increases Commitment to $240 Million


LTC Properties, Inc. (NYSE:LTC), a REIT that primarily invests in long-term care and other healthcare related properties, announced on Wednesday it had completed an amendment to its unsecured revolving credit facility to increase the commitment to $240 million with the option to increase commitments up to $350 million. 

The REIT’s lenders reduced the drawn pricing by 25 basis points and the undrawn pricing by 10 basis points, and also extended the facility’s maturity one additional year to May 25, 2016.

The amendment gives LTC the ability to extend the facility for one year at its discretion.

Based on LTC’s current leverage ratios, the amended facility provides for interest annually at LIBOR plus 125 basis points and an unused commitment fee of 25 basis points. As of May 30, 2012, LTC had $66 million outstanding under the facility. 

Bank of Montreal and Chicago Branch are the facility’s administrative agents, with BMO Capital Markets and KeyBanc Capital Markets as co-lead arrangers and joint book runners, Key Bank National Association as syndication agent, and Royal Bank of Canada and Wells Fargo Bank, National Association as Co-Documentation Agents. 

Cambridge Realty Closes a $13.6 Million Refinance for a Calif. Nursing Home

Cambridge Realty Capital Companies recently closed a $13.6 million HUD Lean loan to refinance Anberry Rehabilitation Hospital, a skilled nursing care facility located in Atwater, Calif. 

The 33-year, fully-amortized loan was arranged for the property’s owner using HUD’s Section 232/223(f) funding program. Cambridge Realty Capital Ltd. of Ill. underwrote the loan; the interest rate was not disclosed. 

Hymie Barber, Cambridge’s national originations manager, coordinated the transaction. 

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