TOLEDO, Ohio — Welltower Inc. (NYSE:HCN), the largest healthcare REIT in the United States by market cap, has closed a $3.7 billion unsecured credit facility, replacing the company’s previous facility and expanding the total by $500 million.
The $3.7 billion consists of a $3 billion revolving line of credit, a $500 million term loan and a CA$250 million term loan, which equates to $193.5 million based on exchange rates on May 13, 2016.
The revolving facility matures May 13, 2020, and can be extended for two successive terms of six months each. Based on the company’s current credit ratings, the revolver bears interest at LIBOR plus 90 basis points and has an annual facility fee of 15 basis points.
The term loans mature May 13, 2021, and bear interest at LIBOR and CDOR for the U.S. and Canadian loans, respectively, plus 95 basis points.
Welltower has an option to upsize the revolving facility and the U.S. loan by up to an additional $1 billion, in the aggregate, and the Canadian loan by up to an additional CA$250 million, allowing for a total credit facility of up to $5 billion. The facility also allows the company to borrow up to $1 billion in alternate currencies.
Merrill Lynch, Pierce, Fenner & Smith Incorporated and JPMorgan Chase Bank N.A. arranged the loans as the joint book runners. Bank of America N.A. and JPMorgan Chase Bank N.A. were the co-syndication agents.
Merrill Lynch, Pierce, Fenner & Smith Inc., JPMorgan Chase Bank N.A., KeyBanc Capital Markets Inc. and Deutsche Bank Securities Inc. were the U.S. joint lead arrangers. Merrill Lynch, Pierce, Fenner & Smith Inc., JPMorgan Chase Bank N.A., KeyBanc Capital Markets Inc. and RBC Capital Markets were the Canadian joint lead arrangers. KeyBank National Association was the administrative agent. Deutsche Bank Securities Inc. served as the documentation agent.