Healthcare Realty trims pricing on $700 million loans, extends to 2017

By Susanna Moon

Chicago, Feb. 19 - Healthcare Realty Trust Inc. said it lowered pricing on its $700 million unsecured revolving credit facility to Libor plus 140 basis points and extended the maturity until April 14, 2017.

The company amended the facility with a syndicate of 15 banks, led by Wells Fargo Securities, LLC and J.P. Morgan Securities LLC as joint lead arrangers and joint bookrunners, according to a company press release.

Wells Fargo Bank, NA is the administrative agent; JPMorgan Chase Bank, NA is the syndication agent; and Barclays Bank plc and Credit Agricole Corporate and Investment Bank are the co-documentation agents.

The facility fee is now 30 bps, and pricing was reduced from Libor plus 150 bps with 35 bps facility fee.

The maturity date may be extended until April 14, 2018 for a fee equal to 0.15% of the total commitments.

Revolver background

The company said on Oct. 19, 2011 that it obtained the $700 million four-year facility to replace its $550 million facility.

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

Interest on the loans was reduced from Libor plus 280 bps with a 40 bps facility fee for the company's previous facility.

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

The facility was set to expire Oct. 14, 2015, with a one-year extension option.

Other lenders included 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 at the time for a total amount of about $180 million.

Covenants included maintaining financial ratios and a limit on additional debt as well as mergers, investments, acquisitions, redemptions of capital stock and 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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