HCP is based in Long Beach, CA.

LOS ANGELES—HCP, a fully integrated REIT focused on healthcare properties, has increased its unsecured revolving credit facility to $2 billion, an increase of $500 million. The amended facility improves the company’s pricing and extends its interest term to May 18, 2018, increasing the financial flexibility for the REIT.

All of the company’s lenders committed to the increased credit line. “We are pleased that 100% of our relationship lenders re-committed to our credit facility,” says Lauralee Martin, president and CEO of HCP. “This successful execution demonstrates our continued commitment to a strong balance sheet.” With the credit bump, the REIT lowers it funded interest costs by 17.5 basis points in addition to the extended term. The credit facility has an annual interest of LIBOR+ 92.5 basis points and a facility fee of 15 basis points, according to a spokesperson for the company. 

Aside from increasing the credit, other terms will remain the same. The REIT continues to have a one-year extension option and can increase commitments in amounts that do not exceed $500 million.

The increase credit facility comes after the REIT priced a public offering of $350 million in February. The offering closed on February 21, and had a yield-to-maturity of 4.257%. At the time, HCP expected to earn $345 million from the offering, and would apply $240 million to repay the remaining on the REIT’s bank line of credit