American Healthcare Investors Negotiates $650M Credit Facility for Griffin-American Healthcare REIT IV

IRVINE, Calif. — American Healthcare Investors LLC and Griffin Capital Corp., the co-sponsors of Griffin-American Healthcare REIT IV, have arranged a new credit facility for the non-traded REIT.

The new credit facility totals $400 million, with Merrill Lynch, Pierce, Fenner & Smith Inc., KeyBanc Capital Markets and Citizens Bank NA as joint lead arrangers and joint bookrunners. Bank of America will serve as administrative agent, swing line lender and letters of credit issuer. KeyBank will serve as syndication agent and an additional letters of credit issuer. Citizens Bank will serve as an additional syndication agent.

The maximum principal amount of the credit facility may be increased to up to $650 million upon the request of Griffin-American Healthcare REIT IV and satisfaction of certain conditions. The credit facility may be utilized for refinancing existing debt and for general corporate purposes including, without limitation, property acquisitions.

"This credit facility essentially replaces one that was due to mature in 2019 with better terms that we believe will benefit our investors and allow us to continue to accretively grow the portfolio of Griffin-American Healthcare REIT IV," says Jeff Hanson, a founding principal of American Healthcare Investors and chairman and chief executive officer of Griffin-American Healthcare REIT IV.

The credit facility matures on Nov. 19, 2021, but may be extended for one 12-month period during its term by Griffin-American Healthcare REIT IV upon the satisfaction of certain conditions, including payment of an extension fee. 

As of Nov. 15, 2018, Griffin-American Healthcare REIT IV's portfolio consisted of 58 medical office buildings, seniors housing facilities and skilled nursing facilities located in 20 states totaling 3.4 million square feet. Additionally, the company is currently pursuing approximately $211.6 million in additional pending acquisitions, which would result in a total portfolio of approximately 96 healthcare buildings located in 21 states comprised of approximately 4.6 million square feet of gross leasable area.

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