CareTrust REIT details $800 million restated credit agreement

By William Gullotti

Buffalo, N.Y., Dec. 19 – CareTrust REIT, Inc. detailed its $800 million amended and restated credit and guarantee agreement with KeyBank NA as administrative agent and CTR Partnership, LP as borrower, according to an 8-K filing with the Securities and Exchange Commission.

The agreement consists of a $600 million unsecured revolver, which includes subfacilities for letters of credit and swingline loans not to exceed 10% of the then available commitments each, and a $200 million unsecured term loan.

The credit facility carries an accordion feature which allows CareTrust REIT to seek an additional $500 million of capacity when exercised, subject to customary terms and conditions.

The revolver matures Feb. 9, 2027 and includes two six-month extension options.

The term loan facility matures Feb. 8, 2026.

The amended revolver and continued unsecured term loan have grid-based pricing of adjusted SOFR plus 110 basis points to 155 bps and adjusted SOFR plus 150 bps to 220 bps, respectively.

The revolver further has a facility fee that ranges from 15 bps to 35 bps.

The margins and fee are currently determined by the debt to asset value ratio of the company and its consolidated subsidiaries.

Should CareTrust obtain two investment grade ratings, the pricing grid will be replaced and based upon the company’s credit rating. Should such an event occur, the revolver’s margin will range from 72.5 bps to 140 bps and the term loan’s range will range from 140 bps to 235 bps. The revolver’s facility fee would likewise update to range from 12.5 bps to 30 bps.

KeyBanc Capital Markets, BMO Capital Markets, Capital One, NA and Wells Fargo Securities, LLC are the joint lead arrangers and book managers for the facility.

BMO and Capital One are also co-syndication agents with Wells Fargo Bank, NA.

Huntington National Bank, Raymond James Bank, Bank of America, NA and JPMorgan Chase Bank, NA are the co-documentation agents.

CareTrust is a real estate investment trust engaged in the ownership, acquisition, development and leasing of skilled nursing, seniors housing and other healthcare-related properties.

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