Business
Diversified Healthcare Trust Closes a New $150 Million Secured Revolving Credit Facility
Transaction Further Enhances DHC’s Liquidity and Leverages Attractive SHOP Assets NEWTON, Mass.--(BUSINESS WIRE)-- Diversified Healthcare Trust (Nasdaq: DHC)
About this update from Diversified Healthcare Trust
[{"type":"text","content":"\nTransaction Further Enhances DHC’s Liquidity and Leverages Attractive SHOP Assets\n\n\n NEWTON, Mass.--(BUSINESS WIRE)--\nDiversified Healthcare Trust (Nasdaq: DHC) today announced the closing of a new $150 million secured revolving credit facility. The facility is secured by 14 senior housing communities with 2,632 living units managed by Five Star Senior Living, the operating division of AlerisLife Inc., and provides DHC with enhanced liquidity to support its general business needs.\n\n\nThe revolving credit facility has an initial term of four years, with two six-month extension options, subject to certain conditions, and bears interest at a rate equal to SOFR plus a spread of 250 to 300 basis points, depending on DHC’s net leverage ratio. In connection with the financing, the average per unit valuation of the communities was approximately $184,000.\n\n\nMatt Brown, Chief Financial Officer and Treasurer of DHC, made the following statement:\n\n\n“Having already repaid our 2025 notes in full with refinancing and asset sale proceeds, this new revolving credit facility strengthens our liquidity and financial flexibility. We also believe the average per unit valuation illustrates the high quality of our senior living assets. We greatly appreciate our lenders continued support as we advance our long-term strategy.”\n\n\nCitibank, N.A. served as Administrative Agent, Lead Arranger and Book Running Manager. Bank of America, N.A., Morgan Stanley Bank, N.A., PNC Bank, National Association and Royal Bank of Canada acted as Co-Documentation Agents.\n\n\nAbout Diversified Healthcare Trust\n\n\nDHC is a real estate investment trust 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 March 31, 2025, DHC’s approximately $6.8 billion portfolio included 343 properties in 34 states and Washington, D.C., with more than 26,000 senior living units, approximately 7.6 million square feet of medical office and life science properties and occupied by approximately 450 tenants. DHC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with approximately $40 billion in assets under management as of Ma...