Griffin-American gets $150 million revolver, $250 million term loan

By Sarah Lizee

Olympia, Wash., Nov. 27 – Griffin-American Healthcare REIT IV, Inc. entered into a credit agreement on Nov. 20 providing for a $150 million senior unsecured revolving credit facility and a $250 million senior unsecured term loan facility, according to an 8-K filing with the Securities and Exchange Commission.

The term loan facility consists of a $200 million term loan made on Nov. 20 and an up to $50 million delayed-draw term loan to be made one additional time during the term loan delayed-draw commitment period.

Griffin-American may obtain up to $20 million in the form of standby letters of credit and up to $50 million in the form of swingline loans.

The maximum principal amount of the facility may be increased by up to $250 million for a total principal amount of $650 million.

Revolver borrowings bear interest at Libor plus a margin that ranges from 175 basis points to 220 bps, depending on the consolidated leverage ratio.

Term loan borrowings bear interest at Libor plus a margin that ranges from 170 bps to 215 bps, also based on leverage.

There is a fee on the unused portion of commitments at 20 bps per year if the average daily used amount is greater than 50% of the commitments and 25 bps if the average daily used amount is less than or equal to 50% of the commitments.

The facility matures on Nov. 19, 2021 and may be extended for one 12-month period, subject to some conditions and an extension fee.

Financial covenants include maintenance of a consolidated leverage ratio, consolidated secured leverage ratio, consolidated tangible net worth, consolidated fixed-charge coverage ratio, secured recourse debt, consolidated unencumbered leverage ratio, consolidated unencumbered interest coverage ratio and unencumbered debt yield.

Bank of America is the administrative agent, swingline lender and a letter-of-credit issuer, and KeyBank, NA is the syndication agent and a letter-of-credit issuer. Citizens Bank, NA is the syndication agent.

Merrill Lynch, Pierce, Fenner & Smith Inc., KeyBanc Capital Markets and Citizens Bank are joint lead arrangers and joint bookrunners.

Proceeds may be used for refinancing existing debt and for general corporate purposes.

There were $204.2 million in borrowings outstanding under the facility as of Nov. 20, while $195.8 million remained available, the filing noted.

Also on Nov. 20, the REIT terminated its existing $350 million revolving line of credit and term loan credit facility with Bank of America as administrative agent.

Griffin-American is an Irvine, Calif.-based real estate investment trust building a portfolio of health care real estate assets.

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