CHICAGO — Ventas Inc. (NYSE: VTR) has closed a four-year, $2.8 billion unsecured credit facility. The credit facility was oversubscribed, with support from 24 new and incumbent financial institutions, according to the Chicago-based REIT borrower.
“Ventas’ successful completion of this transaction reinforces our ample liquidity, extends our debt maturities and improves our borrowing costs,” says Robert Probst, executive vice president and chief financial officer for Ventas.
The credit facility is initially priced at 82.5 basis points over LIBOR, based on the company’s debt ratings, a five-basis-point improvement from pricing under its previous unsecured revolving credit facility, which was set to mature in April 2021. The maturity date of the new credit facility is January 2025 and can be extended for an additional year at the company’s option, subject to the satisfaction of certain conditions.
At closing, the new credit facility was substantially undrawn, providing Ventas with nearly $2.7 billion of available borrowing capacity. The credit facility also includes a $1 billion “accordion feature” that permits the company to expand its borrowing capacity to a total of $3.8 billion. It also includes a reduction in borrowing costs based on achievement of specific environmental sustainability-linked metrics.
BofA Securities Inc. and JPMorgan Chase Bank NA were the joint bookrunners for the credit facility. Bank of America NA is serving as the administrative agent, and JPMorgan Chase Bank NA acted as the syndication agent.