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Sabra Health Care increases revolver borrowing capacity to $650 million
By Toni Weeks
San Luis Obispo, Calif., Sept. 10 – Sabra Health Care REIT, Inc. said its operating partnership, Sabra Health Care LP, entered into an amended and restated unsecured revolving credit facility, increasing the borrowing capacity to $650 million from $375 million.
The credit facility, which matures Sept. 10, 2018, has an accordion feature that allows for an additional $100 million of capacity as well as a one-year extension option.
Borrowings bear interest at Libor plus 200 basis points to 260 bps, an improvement from the prior coupon of Libor plus 250 bps to 350 bps. The actual rate is determined on the company’s consolidated leverage ratio. There is also an unused fee of 25 bps to 35 based on usage.
According to a press release, if the company achieves at least two investment-grade ratings from Standard & Poor’s, Moody’s or Fitch, the borrower may reduce the interest rate to Libor plus 90 bps to 170 bps. In this case, the applicable margin would be based on the company’s debt ratings, and the unused fee would no longer apply. Instead, there would be a facility fee of 12.5 bps to 30 bps, depending on the borrowing capacity.
The operating partnership also has an option to convert up to $200 million of the revolving credit facility to a term loan, the release noted.
Obligations under the facility are guaranteed by Sabra.
Bank of America, NA, Citizens Bank, NA, Credit Agricole Corporate and Investment Bank, Barclays Bank plc, Citibank, NA, Royal Bank of Canada, Wells Fargo Bank NA, JPMorgan Chase Bank NA, SunTrust Bank, Huntington National Bank, Raymond James Bank, NA, Stifel Bank & Trust and Chang Hwa Commercial Bank, Ltd. comprise the lender syndicate.
Sabra Health Care 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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