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Diversified Healthcare Trust Announces Amendment to Credit Agreement
Amends Certain Financial Covenants Through Maturity Retains Flexibility to Fund Capital Expenditures NEWTON, Mass.--(BUSINESS WIRE)-- Diversified Healthcare
About this update from Diversified Healthcare Trust
[{"type":"text","content":"\nAmends Certain Financial Covenants Through Maturity\n\nRetains Flexibility to Fund Capital Expenditures\n\n NEWTON, Mass.--(BUSINESS WIRE)--\nDiversified Healthcare Trust (Nasdaq: DHC) today announced that it has amended its credit facility. The key terms of the amendment include:\n\n\nThe waiver of the Fixed Charge Coverage Ratio has been extended through the date of maturity January 15, 2024;\n\n\nDHC has retained the ability to fund up to $400 million of capital expenditures per year but has agreed not to make additional investments in real property with certain limited exceptions;\n\n\nThe minimum liquidity requirement was decreased from $200 million to $100 million;\n\n\nThe credit facility commitments have been reduced from $586.4 million to $450 million;\n\n\nThe interest rate premium increased by 40 basis points; and\n\n\nIn addition, among other things, DHC no longer has the ability to reborrow funds.\n\n\nJennifer Francis, President and Chief Executive Officer of DHC, made the following statement:\n\n“This credit facility amendment provides us needed covenant relief while we continue to execute on our plan to invest capital in our properties and work with our senior living operators as they recover from the effects of the pandemic.”\n\nWells Fargo Securities, LLC, RBC Capital Markets, Citibank, N.A. and PNC Capital Markets LLC acted as Joint Lead Arrangers for the amendment to DHC’s credit agreement. Wells Fargo Bank, National Association is the Administrative Agent and Collateral Agent for the facility.\n\nDHC is a real estate investment trust, or REIT, focused on owning high-quality healthcare properties located throughout the United States. DHC seeks diversification across the health services spectrum by care delivery and practice type, by scientific research disciplines and by property type and location. As of September 30, 2022, DHC’s approximately $7.0 billion portfolio included 379 properties in 36 states and Washington, D.C., occupied by approximately 500 tenants, and totaling approximately 9 million square feet of life science and medical office properties and more than 27,000 senior living units. DHC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with more than $37 billion in assets under management as of December 31, 2022 and more than 35 years of institution...