Summary
Health Care REIT, Inc. (now Welltower Inc.) filed an 8-K on August 1, 2011, reporting the entry into a significant material definitive agreement. Specifically, the company entered into a Fifth Amended and Restated Loan Agreement on July 27, 2011, with a consortium of 31 banks. This new agreement establishes a substantially larger unsecured revolving credit facility of $2,000,000,000, replacing an existing $1,150,000,000 facility. The company had no outstanding loans under the prior agreement. This move indicates a strengthened liquidity position and potentially enhanced capacity for future growth or operational needs. The new credit facility has a maturity of July 27, 2015, with an option for a one-year extension, subject to certain conditions and a fee. The agreement also allows for an increase of up to $500,000,000 to the facility. Interest rates are variable, based on the Company's credit ratings and market rates (LIBOR or base rate), with current applicable margins at 0.35% for base rate loans and 1.35% for LIBOR, swing line, and letter of credit loans. An annual facility fee of 0.25% is also payable. The expanded credit line provides significant financial flexibility.
Key Highlights
- 1Health Care REIT, Inc. entered into a new Fifth Amended and Restated Loan Agreement on July 27, 2011.
- 2The new agreement provides a $2,000,000,000 unsecured revolving credit facility, an increase from the previous $1,150,000,000 facility.
- 3No loans were outstanding under the previous credit facility at the time of the agreement.
- 4The credit facility has an initial maturity date of July 27, 2015, with an option to extend for an additional year.
- 5The company has the flexibility to increase the credit facility by up to an additional $500,000,000.
- 6Interest rates are tied to the company's credit ratings and are based on LIBOR or a base rate, with current margins of 0.35% to 1.35%.
- 7A facility fee of 0.25% is payable annually on the committed amounts.