Community Healthcare closes restated $250 million revolver, term loans

By Marisa Wong

Morgantown, W.Va., March 30 – Community Healthcare Trust Inc. said it closed on an amended and restated $250 million credit facility.

The credit facility provides for a $150 million revolver and $100 million of term loans.

The term loans, which include a delayed-draw portion, consist of $50 million maturing in March 2022 and $50 million maturing in March 2024.

The revolver matures in August 2019, with two 12-month extension options.

The amended and restated credit facility replaces the company’s $150 million revolving credit facility.

Borrowings under the new facility will bear interest at Libor plus a margin based on the maturity and the company’s leverage. The margin ranges from 175 basis points to 275 bps for the revolver and 220 bps and 290 bps for the term loans.

The credit facility has an accordion feature that allows the total borrowing capacity to be increased to $450 million, including the ability to add and fund additional term loans.

At closing, the company borrowed $12 million under its revolver and $60 million under the term loans in equal amounts of five- and seven-year maturities. The company has 15 months from the closing date to borrow undrawn amounts under the term loans.

The company said it intends to enter into swap agreements to fix the interest rates on the term loans. Based on current conditions, this will result in fixed rates under the term loans ranging from 4.15% to 4.55%, depending on the maturity, the company’s leverage and other factors.

SunTrust Robinson Humphrey, Fifth Third Bank and BB&T acted as joint lead arrangers and joint bookrunners, Fifth Third Bank as syndication agent and SunTrust Bank as administration agent. Other banks in the syndication include First Tennessee Bank, Pinnacle Bank, Cadence Bank, Franklin Synergy Bank, CapStar Bank, Synovus Bank and BanCorp South Bank.

The Franklin, Tenn.-based real estate investment trust focuses on owning income-producing real estate properties associated primarily with the delivery of outpatient healthcare services in non-urban markets throughout the United States.

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