Business
Diversified Healthcare Trust Releases Investor Presentation Highlighting Benefits of Pending Merger with Office Properties Income Trust
NEWTON, Mass.--(BUSINESS WIRE)-- Diversified Healthcare Trust (Nasdaq: DHC) yesterday released a presentation outlining the reasons shareholders should vote
About this update from Diversified Healthcare Trust
[{"type":"text","content":" NEWTON, Mass.--(BUSINESS WIRE)--\nDiversified Healthcare Trust (Nasdaq: DHC) yesterday released a presentation outlining the reasons shareholders should vote to approve its pending merger with Office Properties Income Trust (Nasdaq: OPI) ahead of its Special Meeting of Shareholders, scheduled for Wednesday, August 30, 2023. The presentation has been filed with the U.S. Securities and Exchange Commission and is available at www.dhcreit.com/mergerofdhcandopi.\n\nThis press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20230802359052/en/\nHighlights of the presentation include:\n\n\n\nThe compelling value and upside potential for DHC shareholders: The transaction consideration represents a 37% premium to DHC’s share price on April 10, 2023, the day prior to the merger announcement, and a 20% premium to DHC’s 30-day average closing share price as of that date. DHC shareholders will also benefit from OPI’s annual dividend of $0.147 per share, a 267% increase over DHC’s current dividendi. Following the closing of the transaction, DHC shareholders will own 42% of the combined company, enabling them to participate in the considerable upside of a REIT with a diversified, high-quality portfolio, lower leverage and enhanced access to capital to invest in growth initiatives to drive shareholder returns.\n\n\n\n\nThe significant downside risk for DHC and shareholders if the merger is not completed: DHC is currently restricted from issuing or refinancing any debt because DHC is currently not in compliance with its debt incurrence covenants. As such, DHC cannot access debt markets in time to address its $700 million in debt maturities coming due within the next 12 months. If the merger is not approved, DHC will likely have to take actions detrimental to DHC and dilutive to its shareholders. By contrast, a merger with OPI is expected to immediately address DHC’s covenant compliance and pending debt maturities.\n\n\n\n\nA Special Committee of the DHC Board conducted a robust process in consultation with independent advisors and unanimously determined the OPI merger is the best strategic alternative for DHC shareholders: In addition to the DHC Board’s consideration of a significant number of alternatives to address DHC’s financial position over the past two years, a special committee of independe...