Healthcare Trust enters new $1.13 billion term credit agreement

By William Gullotti

Buffalo, N.Y., May 16 – Healthcare Trust of America Holdings, LP and its parent Healthcare Trust of America, Inc. (collectively, HTA) entered into a new $1,125,000,000 term credit agreement with J.P. Morgan Chase Bank, NA as administrative agent on May 13, according to an 8-K filing with the Securities and Exchange Commission.

The term agreement, which at the time of filing remained unfunded, is connected to the Feb. 28 plan of merger between HTA, Healthcare Realty Trust Inc. and HR Acquisition 2, LLC.

The unsecured term facility is scheduled to mature May 13, 2023 and may be extended to May 13, 2024 if certain terms and conditions are met. Any such extension will be subject to a 20 bps fee on the outstanding balance.

Facility borrowings will bear interest at SOFR plus 10 basis points plus an additional margin, determined via HTA’s debt ratings, ranging from 80 bps to 160 bps.

There is also a 20-bps ticking fee on the facility’s undrawn commitments.

The agreement includes some financial covenants, including a 60% maximum consolidated leverage ratio, a 30% maximum consolidated secured leverage ratio, a 60% maximum consolidated unencumbered leverage ratio, a minimum consolidated fixed-charge coverage ratio of 1.5 to 1 and a minimum consolidated unsecured coverage ratio of 1.75 to 1. The maximum consolidated leverage ratio and the maximum consolidated unencumbered leverage ratio may be increased to 65%, with the maximum consolidated secured leverage ratio permitted to be increased to 40%, subject to the satisfaction of certain conditions.

In connection with the effectiveness of the term loan agreement, the company terminated its previous $1.7 billion bridge financing facility with the same administrative agent.

In addition to serving as administrative agent, J.P. Morgan Chase is also the sole bookrunner and a joint lead arranger with Bank of Nova Scotia.

Bank of Nova Scotia is also serving as syndication agent.

Wells Fargo Bank, NA, PNC Bank, NA, U.S. Bank NA and Capital One, NA are the documentation agents.

The New York-based real estate investment trust is focused on medical office buildings, health care properties leased on a triple net basis and senior housing operating properties.

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