Summary
Welltower Inc. (WELL) announced on May 16, 2016, the execution of a new, larger credit agreement, effective May 13, 2016. This new agreement replaces their existing credit facility and significantly increases their borrowing capacity. The total principal amount available under the new unsecured revolving and term credit facilities amounts to $3.5 billion USD and CAD 250 million, an increase from the previous $3 billion USD and CAD 250 million.
Key Highlights
- 1Welltower entered into a new, larger credit agreement on May 13, 2016, totaling $3.5 billion USD and CAD 250 million.
- 2The new credit facility replaces a prior agreement and increases overall borrowing capacity.
- 3The agreement includes a $3 billion unsecured revolving credit facility with a maturity date of May 13, 2020 (extendable).
- 4It also includes a $500 million unsecured USD term credit facility and a CAD 250 million unsecured CAD term credit facility, both maturing on May 13, 2021.
- 5The company has the option to increase the credit facilities by an additional $1 billion USD and CAD 250 million, subject to lender commitment.
- 6Interest rates are tied to the Company's debt ratings and can be based on LIBOR, CDOR, or a base rate.
- 7The new agreement includes customary representations, warranties, covenants, and events of default.
Frequently Asked Questions
This 8-K filing announces the entry into a new, material definitive agreement, specifically a significantly expanded credit facility for Welltower Inc. It also details the termination of their previous credit agreement.
Welltower's total borrowing capacity has increased. The new credit agreement provides a $3 billion unsecured revolving credit facility and $500 million unsecured USD term credit facility, plus a CAD 250 million unsecured term credit facility, totaling $3.5 billion USD and CAD 250 million. This is an increase from their previous $2.5 billion revolving and $500 million USD term facilities.
The unsecured revolving credit facility matures on May 13, 2020, with options for two six-month extensions. The unsecured USD and CAD term credit facilities both mature on May 13, 2021.
Yes, Welltower has the right to increase the amount available under the credit facilities by up to an additional $1 billion USD for the Revolving and USD Term Facilities combined, and CAD 250 million for the CAD Term Facility, subject to lender commitments and certain conditions.