Healthcare real estate investment trust CNL Healthcare Properties announced today that is has increased its original credit line by $155 million, which will allow CNL take advantage of new investment opportunities as they arise.
Its original $120 million line of credit was increased to $275 million, with the option to access additional capacity up to $325 million via an accordion feature. The $155 million increase includes the addition of five new lenders. The company closed its inaugural $120 million line of credit in August 2013.
The increased credit line includes 10 lenders, with new commitments from JPMorgan Chase Bank, SunTrust Bank, RBS Citizens, Comerica Bank and Seaside National Bank & Trust. They join an initial group of lenders that consisted of KeyBank as the lead arranger and administrative agent with Bank of America, Fifth Third Bank, PNC Bank and Cadence Bank as participating institutions.
The company is planning to target new investments through the credit line increase, its chief executive said in a press release.
“The expanded credit facility provided by this high-quality group of lenders demonstrates their confidence in CNL Healthcare Properties,” said Stephen H. Mauldin, president and CEO of CNL Healthcare Properties. “The initial line of credit has helped us substantially grow our senior living and healthcare portfolio over the last several months. The expanded facility will further assist us in taking advantage of compelling investment opportunities as we continue to broaden and diversify our portfolio.”
CNL has been active in the senior living acquisition landscape, most recently having acquired a 12-property senior living portfolio for $302 million in December 2013. The 12 properties are based in Idaho, Montana, Nevada and Oregon and will be managed by Prestige Senior Living and MorningStar Senior Living, each under long-term leases established with CNL.
In February of this year CNL acquired four senior housing communities in Washington for a total of $88.3 million.
Written by Cassandra Dowell