Sabra Health Care enters $375 million restated revolving facility

By Marisa Wong

Madison, Wis., July 31 - Sabra Health Care REIT, Inc.'s general partner, Sabra Health Care LP, entered into an amended and restated secured revolving credit facility with a borrowing capacity of $375 million, according to an 8-K filing with the Securities and Exchange Commission.

The operating partnership entered into the amended and restated credit agreement on July 29 with Bank of America, NA as administrative agent, swingline and letter-of-credit issuer; Barclays Bank plc, Citibank, NA, Credit Agricole CIB, RBS Citizens, NA, Royal Bank of Canada and Wells Fargo Bank, NA as co-documentation agents; and Merrill Lynch, Pierce, Fenner & Smith as lead arranger and bookrunner.

The revolving credit facility amends and restates the secured revolver dated Nov. 3, 2010 that provided for a borrowing capacity of $230 million, following an accordion exercise on Sept. 20, 2012.

The restated revolver includes an accordion feature that lets the company increase availability by up to $225 million. Borrowing availability, which is subject to a borrowing base calculation based on mortgageability cash flow, was $286.5 million at closing.

The revolver matures on July 29, 2016 and has a one-year extension option.

Borrowings will bear interest at Libor plus an applicable margin based on the consolidated leverage ratio. The spread ranges from 250 basis points to 350 bps.

In addition, the operating partnership is required to pay a facility fee of between 35 bps and 50 bps, based on the amount of unused borrowings.

The credit facility also requires Sabra to comply with some financial covenants, including a maximum leverage ratio, a minimum fixed charge coverage ratio and a minimum tangible net worth requirement.

Sabra is an Irvine, Calif.-based real estate investment trust that owns and invests in real estate properties for the health care industry.

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