Healthcare Trust restates $1.3 billion two-tranche credit agreement

By Wendy Van Sickle

Columbus, Ohio, Oct. 7 – Healthcare Trust, Inc. and its operating partnership, Healthcare Trust of America Holdings, LP, entered into a third amended and restated $1.3 billion revolving credit and term loan agreement, according to a news release on Thursday.

The credit agreement consists of a $1 billion revolver and a $300 million term loan. It refinances the existing $1.3 billion unsecured credit agreement and will lower the company's borrowing costs and extend maturities.

The credit agreement will mature in October 2025, and each tranche can each be extended for up to one year.

Based on the company's current investment-grade ratings, the revolver will initially be priced at Libor plus 105 basis points with a 20 bps facility fee, and the term loan will initially be priced at Libor plus 95 bps.

The agreement includes customary Libor replacement terms and contains a sustainability-linked feature, which allows for a reduction in pricing upon the company's realization of certain sustainability ratings.

J.P. Morgan Chase Bank, NA, Wells Fargo Securities, LLC, U.S. Bank NA, BofA Securities, Inc., Capital One, NA and PNC Capital Markets LLC served as joint lead arrangers with JPMorgan as the administrative agent. Wells Fargo Bank, NA, U.S. Bank, Capital One, PNC Bank, NA and Bank of America, NA served as syndication agents.

Bank of Montreal, Bank of Nova Scotia, Fifth Third Bank, NA, Mizuho Bank, Ltd., Morgan Stanley Senior Funding, Inc., MUFG Bank, Ltd. and Regions Bank served as documentation agents.

The New York-based real estate investment trust is focused on medical office buildings, health care properties leased on a triple net basis and senior housing operating properties.

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