Aviv REIT Gets $600M Credit Facility

CHICAGO—Aviv REIT, Inc., a Chicago-based trust that specializes in owning healthcare properties, has just refinanced its existing $400 million secured revolving credit facility with a new $600 million unsecured revolving credit facility. The move follows the release of first quarter results that, as reported last week in GlobeSt.com, seemed to score a hit with analysts such as to RBC Capital Markets. “We believe the company is now in a solid financial position with over $450 million of dry powder including an undrawn $400 million credit facility,” the analysts stated.

The company can extend the new credit facility for an additional year if it chooses, subject to certain conditions. The facility also contains an accordion feature which could increase the borrowing capacity to $800 million and has a rate that ranges from 170 to 225 bps over LIBOR. At closing, the company had no borrowings outstanding under the credit facility.