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Aviv REIT converts $100 million delayed-draw term loan into revolver
By Angela McDaniels
Tacoma, Wash., April 22 - Aviv REIT, Inc. converted the $100 million secured delayed-draw term loan available under its credit agreement into a secured revolving credit facility on April 16, according to an 8-K filing with the Securities and Exchange Commission.
The credit agreement was entered into on March 26. In addition to the delayed-draw term loan, it provided for a $300 million secured revolver. Following the conversion, the amount available under the revolvers is $400 million.
Aviv Financing IV, LLC is the borrower, and Aviv REIT is guarantor.
BofA Merrill Lynch acted as bookrunner and, along with RBC Capital Markets and SunTrust Robinson Humphrey, Inc., joint leader arranger. Bank of America, NA is the administrative agent.
The maturity date is March 26, 2016. The borrower has a one-year extension option.
The credit agreement has a $100 million accordion feature.
The interest rate is Libor plus 235 basis points to 300 bps, depending on leverage. The unused fee is 35 bps or 50 bps.
The amount available for borrowing under the revolvers is subject to the lesser of the aggregate mortgageability amount for each of the properties that form the borrowing base and the aggregate collateral value amount of the borrowing base assets.
Covenants include a leverage ratio of less than 60%, a minimum fixed charge coverage ratio of 1.5 to 1.0, a minimum tangible net worth equal to at least $350 million plus 80% of the net proceeds of any additional equity issuances and a minimum rent coverage ratio of at least 1.3 to 1.0.
Aviv is a Chicago-based owner of skilled nursing and other health-care properties.
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