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Diversified Healthcare Trust Prices $375 Million of Senior Secured Notes Due October 2030
Proceeds Will Be Used to Partially Redeem Existing Senior Secured Notes Due January 2026 NEWTON, Mass.--(BUSINESS WIRE)-- Diversified Healthcare Trust
About this update from Diversified Healthcare Trust
[{"type":"text","content":"\nProceeds Will Be Used to Partially Redeem Existing Senior Secured Notes Due January 2026\n\n\n NEWTON, Mass.--(BUSINESS WIRE)--\nDiversified Healthcare Trust (Nasdaq: DHC) (“DHC”) today announced it has priced $375 million aggregate principal amount of 7.25% senior secured notes due October 2030. The closing is expected to occur on September 26, 2025, subject to the satisfaction of customary closing conditions. The new notes will be fully and unconditionally guaranteed (i) on a joint, several and senior secured basis, by subsidiaries of DHC that own 36 real properties located in the United States and (ii) on a joint, several and unsecured basis, by all subsidiaries of DHC that currently guarantee DHC’s zero coupon Senior Secured Notes due 2026 (the “2026 Notes”) on an unsecured basis and by all subsidiaries of DHC that currently guarantee DHC’s 4.375% Senior Notes due 2031 (collectively, the “Subsidiary Guarantors”). The Subsidiary Guarantors will guarantee the principal, any premium, and accrued and unpaid interest on the notes. The new notes and the guarantees provided by the Subsidiary Guarantors that own the 36 real properties will be secured by a first-priority lien and security interest on 100% of the equity interests in each such Subsidiary Guarantor, subject to customary exceptions and permitted liens.\n\n\nDHC expects to use the net proceeds from the offering to partially redeem approximately $307 million of the 2026 Notes at a redemption price equal to 100% of the principal amount being redeemed on September 26, 2025, to pay related fees and expenses associated with such redemption and for general business purposes. DHC expects to use proceeds from asset sales, cash on hand and its existing revolving credit facility to redeem the remainder of the 2026 Notes during the fourth quarter of 2025.\n\n\nThe new notes have not and will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), any state securities laws or the securities laws of any other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from registration under the Securities Act or any applicable state securities laws. The new notes are being offered only to persons reasonably believed to be qualified institutional buyers under Rule 144A under the Securities Act and ou...