Business
Diversified Healthcare Trust Amends Credit and Term Loan Agreements and Provides COVID Related Business Updates
NEWTON, Mass.--(BUSINESS WIRE)-- Diversified Healthcare Trust (Nasdaq: DHC) today announced that it has amended the agreements governing its $1 billion
About this update from Diversified Healthcare Trust
[{"type":"text","content":" NEWTON, Mass.--(BUSINESS WIRE)--\nDiversified Healthcare Trust (Nasdaq: DHC) today announced that it has amended the agreements governing its $1 billion unsecured revolving credit facility and $200 million unsecured term loan, and is also providing certain business updates in light of the ongoing COVID-19 (coronavirus) pandemic.\n\n\nCredit Facility and Term Loan Amendments\n\n\nOn June 30, 2020, DHC amended the agreements governing its $1 billion unsecured revolving credit facility and $200 million unsecured term loan. The amendments modify certain of the financial covenants under these agreements through June 30, 2021, or the Amendment Period, during which, subject to certain conditions, DHC will continue to have access to undrawn amounts under its revolving credit facility.\n\n\nDuring the Amendment Period:\n\n\n\nDHC will be required to maintain unrestricted liquidity (unrestricted cash and undrawn availability under its revolving credit facility) of not less than $200 million;\n\n\nDHC’s interest rate premium over LIBOR under its revolving credit facility and term loan will be increased by 50 basis points;\n\n\nDHC’s ability to pay distributions on its common shares will be limited to paying a cash dividend of $0.01 per common share per quarter and amounts required to maintain its qualification for taxation as a real estate investment trust, or REIT, and to avoid the payment of certain income and excise taxes;\n\n\nDHC will be subject to certain additional covenants, including additional restrictions on its ability to incur indebtedness (with exceptions for borrowings under its revolving credit facility and certain other categories of secured and unsecured indebtedness), and to acquire real property or make other investments (with exceptions for, among other things, certain categories of capital expenditures and costs); and\n\n\nDHC will generally be required to apply the net cash proceeds from the disposition of assets, capital markets transactions, debt financings or COVID-19 government stimulus programs to the repayment of outstanding loans under the credit agreement, if any.\n\n\n\nDHC has the right to terminate the Amendment Period prior to June 30, 2021, subject to certain conditions.\n\n\nOffice Segment\n\n\nDHC’s Office Segment, which contains Medical Office and Life Science assets, has maintained strength through ...