Welltower Announces Increase and Extension of $5.2 Billion Unsecured Credit Facility
TOLEDO, Ohio, June 16, 2022 /PRNewswire/ — Welltower® Inc. (NYSE: WELL) (the “Company” or “Welltower”) announced today that it has closed on an amended basis $4.0 billion unsecured revolving credit line (“Revolving Facility”), $1.0 billion term loan and CAD 250 million term loan (collectively, the “Term Loan”). Through the Amendment, the Company will improve its already strong liquidity position and extend its well-laddered debt maturity profile, while achieving better pricing across the Term Facility.
“Today’s announcement underscores our commitment to further improve our already strong balance sheet and liquidity profile, while maintaining maximum financial flexibility,” said Tim McHugh, CFO of Welltower. “The increased size, extended duration and more efficient pricing enable the Company to continue to create significant value for our shareholders in any macroeconomic environment. We appreciate the meaningful engagement offered by the 31 participating financial institutions and the continued support from our banking partners.”
The revolving facility is comprised of an existing fund $3.0 billion tranche (“RCF A”) which matures June 4, 2025 and a change $1.0 billion tranche (“RCF B”) which matures on June 4, 2026which will replace the Company’s current $1.0 billion RCF B which was due to mature on June 4, 2023. Both tranches of the Revolving Facility may be extended for two successive six-month terms at the option of the Company. Based on Welltower’s current credit ratings, loans under the revolving facility currently bear interest at 77.5 basis points above the adjusted SOFR rate. In addition, the revolving facility allows for a reduction in the interest rate when certain reductions in greenhouse gas emissions are met. Based on Welltower’s current credit ratings, the revolving facility currently carries an annual facility fee of 15 basis points.
The Company also closed on a $1.0 billion term loan and a CAD 250 million term loans that each mature July 19, 2026 and will replace the Company’s current $500 million term loan and CAD 250 million term loan which was to mature on July 19, 2023. The two tranches of the Term Facility may be extended for two successive periods of six months at the option of the Company. Based on Welltower’s current credit ratings, loans under the term facility bear interest at 85.0 basis points above the adjusted SOFR rate, representing a five basis point improvement over pricing under the Company’s previous term facility. In addition, the term facility allows for a reduction in the interest rate when certain reductions in greenhouse gas emissions are met.
Welltower has the ability to increase the revolving facility and the US dollar term loan up to an additional C$1.25 billion, in aggregate, and the Canadian dollar term loan up to an additional C$250 million. Closing of the Amendment increases the Company’s total available credit, assuming all additional facilities are funded, to more than $6.5 billion in total. The Company is authorized to borrow up to $1.0 billion from the Revolving Facility in certain foreign currencies.
BofA Securities, Inc., JPMorgan Chase Bank, NA, KeyBanc Capital Markets Inc. and Wells Fargo Securities LLC were the US co-arrangers for RCF A and BofA Securities, Inc., KeyBanc Capital Markets Inc. and Wells Fargo Securities LLC were the American Joint Lead Arrangers for RCF B and Term Facilities. BofA Securities, Inc., JPMorgan Chase Bank, NA, KeyBanc Capital Markets Inc. and RBC Capital Markets were the Canadian co-arrangers for RCF A and BofA Securities, Inc., KeyBanc Capital Markets Inc. and RBC Capital Markets were the Joint Lead Arrangers for RCF B and term facilities. BofA Securities, Inc. and JPMorgan Chase Bank, NA were the joint bookrunners for RCF A and BofA Securities, Inc. was the sole bookrunner for RCF B and the term facilities. Bank of America, NA and JPMorgan Chase Bank, NA were the co-syndication agents for RCF A and Bank of America, NA was the sole syndication agent for RCF B and the term facilities. KeyBank National Association is the administrative agent and Credit Agricole Corporate and Investment Bank is the sustainability structuring agent.
Welltower Inc. (NYSE: WELL), an S&P 500 company headquartered in Toledo, Ohio, is driving the transformation of healthcare infrastructure. The company invests with leading senior housing operators, post-acute care providers and healthcare systems to fund the real estate infrastructure needed to scale innovative care delivery models and improve well- being people and the overall health care experience. Welltower®, a real estate investment trust (“REIT”), holds interests in properties concentrated in key high-growth markets in the United States, Canada and the United Kingdom, including senior housing, community post-acute care and outpatient medical services. Properties. More information is available at www.welltower.com.
This press release may contain “forward-looking” statements as defined in the Private Securities Litigation Reform Act of 1995. Where Welltower uses words such as “may”, “will”, “intend”, “should” , “believes”, “expects”, “anticipates”, “projects”, “estimates” or similar expressions that do not relate solely to historical matters, it makes forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause Welltower’s actual results to differ materially from Welltower’s expectations discussed in the forward-looking statements. This may be the result of a variety of factors, including, but not limited to, factors discussed in Welltower’s reports filed from time to time with the SEC. Welltower undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, or to update as to why actual results may differ from those projected in the forward-looking statements.
SOURCE Welltower Inc.