AR Global’s Healthcare Trust Expands Credit Facilities
Healthcare Trust Inc., a publicly registered non-traded real estate investment trust sponsored by AR Global, has closed approximately $150 million of additional advances under its existing Fannie Mae master credit facilities with KeyBank National Association and Capital One Multifamily Finance LLC.
The company used approximately $100 million of the additional advances to pay down its senior secured revolving credit facility and expects to utilize the balance for future acquisitions and general corporate purposes.
“We are very pleased to announce the successful closing of advances on our Fannie Mae master credit facilities and believe this demonstrates the strength of our relationship with our lenders and aligns with our long term corporate strategy of growing our high-quality healthcare portfolio,” said Leslie Michelson, non-executive chairman of the board of directors.
He added, “As a result of these actions, HTI is not only provided with new capital to deploy towards additional acquisitions but also access to more borrowing capacity through the pledging of these acquisitions on our senior secured revolving credit facility.”
The additional advance under the KeyBank Facility is secured by 10 senior housing properties owned by company subsidiaries. The additional advance under the Capital One Facility is secured by five seniors housing properties. The additional advances under the KeyBank Facility and the Capital One Facility bear interest at a rate of LIBOR plus a 2.41 percent margin and mature on November 1, 2026.
In other company news, Healthcare Trust recently agreed to purchase substantially all of the assets of affiliated non-traded REIT, American Realty Capital Healthcare Trust III, for approximately $120 million.
Healthcare Trust invests in healthcare-related assets including medical office buildings, seniors housing and other healthcare-related facilities and owns an 8.4 million-square-foot portfolio of 163 properties with a total purchase price of $2.3 billion. The company’s primary offering went effective in February 2013 and closed in November 2014 after raising $2.2 billion in investor equity.
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