Healthcare Realty closes $700 million four-year revolver via 17 banks

By Susanna Moon

Chicago, Oct. 19 - Healthcare Realty Trust Inc. said it replaced its $550 million facility with a new $700 million four-year unsecured revolving credit facility with a syndicate of 17 banks led by Wells Fargo Bank, NA as administrative agent.

There is a $90 million sublimit for standby letters of credit and swingline loans.

Interest on the loans is Libor plus 150 basis points with a 35 bps facility fee, compared with Libor plus 280 bps and 40 bps facility fee for the company's old facility.

The margin on the new loans will be Libor plus 107.5 bps to 190 bps, based on the company's credit ratings. The spread on the facility fee will be 17.5 bps to 45 bps, also based on ratings.

The facility is due Oct. 14, 2015, and there is a one-year extension option.

JPMorgan Chase Bank, NA is syndication agent. Barclays Bank plc, Credit Agricole Corporate and Investment Bank, and Bank of America, NA are co-documentation agents.

Other lenders are Fifth Third Bank, Bank of Montreal - Chicago Branch, Royal Bank of Canada, SunTrust Bank, Bank of Nova Scotia, Compass Bank, PNC Bank, NA, Branch Banking and Trust Co., Regions Bank, Pinnacle National Bank, First Tennessee Bank, NA and First Commercial Bank New York Branch.

The company repaid the former credit facility last Friday, and the total amount was about $180 million.

Covenants include maintaining financial ratios and a limit on additional debt as well as mergers, investments, acquisitions, redemptions of capital stock, transactions with affiliates.

Healthcare Realty is a Nashville-based a real estate investment trust that integrates owning, managing and developing properties associated primarily with outpatient health care services.

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