Care Capital Properties Refinances $600M in Debt

by Jeff Shaw

CHICAGO — Care Capital Properties Inc. (NYSE:CCP), the Chicago-based skilled nursing REIT that spun off of Ventas last year, has refinanced or swapped a total of $600 million of debt.

The $600 million comes from two separate transactions:

  • A $200 million unsecured, seven-year term loan. The floating interest rate on the loan is initially priced at 180 basis points over LIBOR, but will be swapped to a fixed rate of 3.25 percent. CCP used the proceeds of the term loan to repay a portion of the company’s existing $600 million unsecured term loan due August 2017.
  • A swap of $400 million of CCP’s $800 million unsecured term loan due August 2020 from 150 basis points over LIBOR to an all-in fixed interest rate of 2.73 percent.

“CCP has made a great start in expeditiously replacing our interim financing with longer-term, fixed-rate borrowings that have a staggered maturity schedule — one of our top priorities for 2016,” says Raymond Lewis, CEO of CCP. “ With these transactions, we fixed the rate on over 40 percent of our term debt, repaid $200 million of our two-year unsecured term loan, and extended our debt maturities.

“We now effectively have $600 million of fixed rate debt with a weighted average maturity of 5.4 years and a weighted average interest rate of 2.9 percent. Our commitment to establishing our permanent capital structure includes ensuring that we can access debt and equity from multiple sources.”

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