Diversified Healthcare to borrow $800 million revolver balance

By Wendy Van Sickle

Columbus, Ohio, March 31 – Diversified Healthcare Trust gave notice to its lenders to borrow the $800 million balance of its revolving credit facility on March 26, according to an 8-K filing with the Securities and Exchange Commission.

The interest rate as of March 26 was 2.85% plus a facility fee of 30 basis points per annum on the total amount of commitments.

The company said it increased borrowings as a precautionary measure in order to increase its cash position and preserve financial flexibility in light of uncertainty resulting from Covid-19.

The company expects its ratio of consolidated income available for debt service to debt service could fall below the 1.5x requirement. Diversified will not be allowed to incur additional debt with the ratio below 1.5x and, as a result, borrowed the remaining balance.

Diversified Healthcare is a Newton, Mass.-based owner of health care related properties, such as medical office and life science properties, senior living communities and other health care related properties.

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