Diversified Healthcare to repay loan, notes due 2024 via new notes

By Marisa Wong

Los Angeles, Dec. 19 – Diversified Healthcare Trust announced it plans to repay all of its outstanding debt maturing in 2024 using proceeds from an offering of new notes.

The debt being repaid includes the trust’s $450 million secured credit facility and its outstanding $250 million 4¾% senior notes due May 2024.

The trust priced $941 million of 0% senior secured notes due Jan. 15, 2026 with a 12-month extension option, according to a Tuesday press release.

The offering is expected to close on Dec. 21. Once the transaction closes and the outstanding debt is repaid, the trust will immediately regain compliance with the incurrence covenants under its remaining public debt agreements.

Proceeds from the new notes will also be used for general business purposes.

The real estate investment trust focused on owning health care properties is based in Newton, Mass.

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