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CNL Healthcare gets new $250 million term loan, increases revolver
By Tali Rackner
Norfolk, Va., Nov. 25 – CNL Healthcare Properties, Inc. operating company CHP Partners, LP entered into a term loan agreement with agent KeyBank NA providing for an additional senior unsecured term loan in the initial total amount of $250 million, according to an 8-K filing with the Securities and Exchange Commission.
The second term loan matures on Nov. 19, 2020, and may be increased to $350 million. It is in addition to the existing $230 million senior unsecured revolving line of credit and $175 million senior unsecured term loan facility.
Also on Nov. 19, CNL amended and expanded the revolver to $245 million.
With the new term loan, the company has the ability to increase its total borrowings under the facilities to $1.05 billion.
Interest on the second term loan is equal to Libor plus 155 basis points to 215 bps, based on leverage.
Under the amended agreement, the operating partnership is required to maintain a pool of at least 25 unencumbered pool assets with a minimum value of $400 million.
The financial covenants are the same as those set forth in the initial credit agreement.
In connection with the second term loan and the increase in the revolver, the company paid customary fees to KeyBank, repaid an interim loan in the amount of $100 million and paid down $145 million of principal outstanding on the revolver.
Keybanc Capital Markets LLC, Bank of America Merrill Lynch, J.P. Morgan Securities LLC and SunTrust Robinson Humphrey, Inc. are joint lead arrangers. Bank of America, NA, JPMorgan Chase Bank, NA and SunTrust Bank are co-syndication agents, and Fifth Third Bank is the documentation agent.
The Orlando, Fla., company focuses on acquiring properties in the senior housing and health-care sectors.
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