REIT Enters Potential $350M Credit Line

IRVINE, CA—Griffin-American Healthcare REIT III Inc. has entered into a $60-million revolving line of credit with Merrill Lynch; Pierce, Fenner & Smith Inc.; and KeyBanc Capital Markets as joint lead arrangers. The credit line may be increased up to $350 million upon meeting certain conditions, and the credit facility may be utilized to acquire, finance or refinance properties, as well as for other corporate purposes. Bank of America will serve as administrative agent, and KeyBank National Association will act as syndication agent.

The credit facility matures on August 18, 2017, but the REIT may extend it for two one-year periods upon the satisfaction of certain conditions. At the option of the REIT’s operating partnership, draws under the facility bear interest at per-annum rates equal to either 1) the Eurodollar Rate plus a margin ranging from 1.95% to 2.45% based on the REIT’s consolidated leverage ratio, or 2) the greater of Bank of America’s prime rate, the Federal Funds Rate plus .5% or the one-month Eurodollar Rate plus 1%, plus a margin ranging from .75% to 1.25% based on the REIT’s consolidated leverage ratio.