Welltower Inc. has closed on a senior unsecured revolving line of credit worth $6.25 billion, with the potential for more, as the rental housing-focused firm gears up for opportunities to deploy capital.
The revolving facility consists of two tranches: a $4.25 billion one (slated to mature on March 6, 2030) and another coming out to $2 billion (scheduled to mature on July 24, 2029. The Toledo, Ohio-based firm said it will have the opportunity to upsize the revolving line to $7.5 billion, a $1.25 billion increase from the close.
Welltower's current credit rating puts the facility's annual fee at 12.5 basis points and the bear interest rate at 67.5 basis points over the SOFR.
Overall, this provides Welltower with a 15 basis points improvement in pricing.
The company noted that its strong credit rating, which was recently upgraded by Moody's from stable to positive, put Welltower in a position to make the move. Now, the firm, which operates more than 2,500 wellness and senior housing communities in the U.S., Canada and the U.K, plans to target investment opportunities.
"The successful upsizing and extension of our line of credit further strengthens Welltower's already robust balance sheet, lowers our cost of capital, and highlights our unparalleled seniors housing growth outlook," Tim McHugh, Welltower's co-president and chief financial officer, said in a statement.
"Through this support, Welltower is well positioned with ample liquidity and historically low leverage to efficiently fund our robust capital deployment opportunities and continue delivering compounding earnings and cash flow per share growth for existing investors in any capital markets environment."
Today's announcement also came with Welltower noting that it has paid back two loans with cash on hand: a USD $1 billion loan and a CAD $250 million loan.
On the credit revolver, the KeyBank National Association is acting as the L/C issuer and the administrative agent.
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