Physicians Realty Trust Announces Amended and Restated Credit Agreement
June 13 2016 - 8:00AM
Business Wire
Increases Unsecured Revolving Credit
Facility to $850 Million
Adds $250 Million Seven Year Term
Loan
Highlights:
- Increases the maximum principal amount
available under an unsecured revolving credit facility from $750
million to $850 million.
- Adds a seven year term loan option to
borrow in a single drawing before July 11, 2016 up to $250
million.
- Results in a current borrowing capacity
of $1.1 billion including the $250 million term loan and, after
giving effect to the $500 million accordion feature, a maximum
borrowing capacity of $1.6 billion.
Physicians Realty Trust (NYSE:DOC) (the “Company,” the “Trust,”
“we,” “our” and “us”), a self-managed healthcare real estate
investment trust, today announced that it entered into an amended
and restated credit agreement (the “Credit Agreement”) on June 10,
2016 with KeyBank National Association, as administrative agent,
KeyBanc Capital Markets Inc., BMO Capital Markets and Citizens
Bank, N.A., as joint lead arrangers and co-book runners, BMO
Capital Markets and Citizens Bank, N.A., as co-syndication agents,
and the lenders party thereto, which increases the maximum
principal amount available under an unsecured revolving credit
facility from $750 million to $850 million. The Credit Agreement
also contains a seven year term loan feature allowing the Operating
Partnership to borrow in a single drawing before July 11, 2016 up
to $250 million, resulting in a current borrowing capacity of $1.1
billion. There is also a $500 million accordion feature which
increases the maximum borrowing capacity to $1.6 billion.
The Credit Agreement has a maturity date of September 18, 2020
and includes an extension option of two additional six month
periods. Borrowings under the Credit Agreement bear interest on the
outstanding principal amount at a rate equal to LIBOR plus 0.85% to
1.55% for the revolving credit facility and LIBOR plus 1.40% to
2.25% for the term loan facility, in each case, determined based on
the range into which the borrower’s credit rating then falls. The
Company’s current credit rating will result in a borrowing rate
equal to LIBOR plus 1.20% for the revolving credit facility and
LIBOR plus 1.80% for the seven year term loan.
Jeff Theiler, Executive Vice President and Chief Financial
Officer of the Trust, commented, “We are extremely pleased with
this transaction. The term loan allows us to lock in seven year
financing at an attractive rate and the upsized revolver increases
our financial flexibility. We greatly appreciate the strong
relationships we have built with our banking partners, some of
which have been with us since our first $75 million secured line of
credit, which continue to help propel our Company’s growth.”
The Credit Agreement contains financial covenants that, among
other things, require compliance with leverage and coverage ratios
and maintenance of minimum tangible net worth, as well as covenants
that may limit the Company’s and the Operating Partnership’s
ability to incur additional debt, grant liens or make
distributions. The Company may, at any time, voluntarily prepay any
revolving loan under the Credit Agreement in whole or in part
without premium or penalty. Prepayment of the term loan may be
subject to a prepayment premium depending on the time at which the
term loan is prepaid.
About Physicians Realty Trust
Physicians Realty Trust is a self-managed healthcare real estate
company organized to acquire, selectively develop, own and manage
healthcare properties that are leased to physicians, hospitals and
healthcare delivery systems. The Company invests in real estate
that is integral to providing high quality healthcare. The Company
conducts its business through an UPREIT structure in which its
properties are owned by Physicians Realty L.P., a Delaware limited
partnership (the “operating partnership”), directly or through
limited partnerships, limited liability companies or other
subsidiaries. The Company is the sole general partner of the
operating partnership and, as of March 31, 2016, owned
approximately 96.5% of the partnership interests in our operating
partnership (“OP Units”).
Investors are encouraged to visit the Investor Relations portion
of the Company’s website (www.docreit.com) for additional information,
including annual reports on Form 10-K, quarterly reports on Form
10-Q, current reports on Form 8-K and amendments to those reports
filed or furnished pursuant to Section 13(a) or 15(d) of the
Securities Exchange Act of 1934, as amended, press releases,
supplemental information packages and investor presentations.
Forward-Looking Statements
This press release contains statements that are “forward-looking
statements” within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended, pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements may be identified by the use of words such as
“anticipate”, “believe”, “expect”, “estimate”, “plan”, “outlook”,
and “project” and other similar expressions that predict or
indicate future events or trends or that are not statements of
historical matters. These forward looking statements may include
statements regarding the Company’s strategic and operational plans,
the Company’s ability to generate internal and external growth, the
future outlook, anticipated cash returns, cap rates or yields on
properties, anticipated closing of property acquisitions, and
ability to execute its business plan. While forward-looking
statements reflect our good faith beliefs, they are not guarantees
of future performance. Forward looking statements should not be
read as a guarantee of future performance or results, and will not
necessarily be accurate indications of the times at, or by, which
such performance or results will be achieved. Forward looking
statements are based on information available at the time those
statements are made and/or management’s good faith belief as of
that time with respect to future events, and are subject to risks
and uncertainties that could cause actual performance or results to
differ materially from those expressed in or suggested by the
forward looking statements. These forward-looking statements are
subject to various risks and uncertainties, not all of which are
known to the Company and many of which are beyond the Company’s
control, which could cause actual results to differ materially from
such statements. These risks and uncertainties are described in
greater detail in the Company’s filings with the Securities and
Exchange Commission (the “Commission”), including, without
limitation, the Company’s annual and periodic reports and other
documents filed with the Commission. Unless legally required, the
Company disclaims any obligation to update any forward-looking
statements after the date of this release, whether as a result of
new information, future events or otherwise. For a description of
factors that may cause the Company’s actual results or performance
to differ from its forward-looking statements, please review the
information under the heading “Risk Factors” included in the
Company’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2015 filed by the Company with the Commission on
February 29, 2016.
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version on businesswire.com: http://www.businesswire.com/news/home/20160613005391/en/
Physicians Realty TrustJohn T. Thomas, 214-549-6611President and
CEOjtt@docreit.comorJeffrey N. Theiler, 414-367-5610Executive Vice
President and CFOjnt@docreit.com
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