Summary
Health Care REIT, Inc. (now Welltower Inc.) announced on June 5, 2005, the establishment of a new $40 million unsecured line of credit with Fifth Third Bank. This facility, which expires on May 31, 2006, provides the company with flexible short-term borrowing options. Interest rates are tied to either the lender's prime rate or a spread over LIBOR, offering the company strategic choices depending on market conditions.
Key Highlights
- 1Health Care REIT, Inc. secured a new $40 million unsecured line of credit.
- 2The credit facility was established with Fifth Third Bank.
- 3The line of credit has an expiration date of May 31, 2006.
- 4Borrowings will accrue interest at either the prime rate or 1.3% over LIBOR, at the company's option.
- 5Principal repayment is due upon the expiration of the agreement.
- 6The agreement includes standard representations, warranties, and events of default leading to acceleration.
Frequently Asked Questions
The primary purpose of this 8-K filing is to report the entry into a material definitive agreement, specifically the establishment of a new $40 million unsecured line of credit by Health Care REIT, Inc. (now Welltower Inc.).
The new $40 million unsecured line of credit provides Health Care REIT, Inc. with immediate access to significant short-term funding, enhancing its financial flexibility for operational needs or strategic opportunities. The dual interest rate options (prime or LIBOR-based) allow for cost optimization based on prevailing market rates.
The key terms include a $40 million unsecured limit, an expiration date of May 31, 2006, variable interest rates based on prime or LIBOR, and principal due at maturity. It also contains customary representations, warranties, and default provisions.
No, this filing specifically addresses the establishment of a line of credit and does not report on any new acquisitions, divestitures, or significant operational changes beyond securing this financing.