Griffin-American Healthcare REIT IV Inc., a publicly registered non-traded real estate investment trust sponsored by American Healthcare Investors and Griffin Capital Corporation, entered into a revolving credit facility totaling $100 million which may be increased to up to $200 million if certain conditions are met.
Merrill Lynch, Pierce, Fenner & Smith Incorporated and KeyBanc Capital Markets are the joint lead arrangers and joint bookrunners, while Bank of America N.A. will serve as administrative agent and as a participating lender along with KeyBank, National Association. The credit facility may be utilized for general working capital (including acquisitions), capital expenditures and other general corporate purposes.
“Thanks in part to lending partners like Bank of America and KeyBank, Griffin-American Healthcare REIT IV is equipped to pursue an efficient portfolio acquisitions process on behalf of its investors,” said Jeff Hanson, a founding principal of American Healthcare Investors and chairman and chief executive officer of Griffin-American Healthcare REIT IV.
The credit facility matures on Aug. 25, 2019, but may be extended for one 12-month period. Draws under the facility bear annual interest rates equal to (a) (i) the Eurodollar Rate plus (ii) a margin ranging from 1.75 percent to 2.25 percent per year based on the REIT’s and its operating partnership’s consolidated leverage ratio, or (b) (i) the greater of Bank of America’s prime rate, the Federal Funds Rate plus 0.50 percent per year, the one-month Eurodollar Rate plus 1.00 percent per annum and zero percent, plus (ii) a margin ranging from 0.55 percent to 1.05 percent per annum based on the REIT’s and its operating partnership’s consolidated leverage ratio.
American Healthcare Investors, an investment management firm that specializes in the acquisition and management of healthcare-related real estate, oversees an approximately 30 million-square-foot portfolio valued at more than $8 billion.
Griffin-American Healthcare REIT IV focuses primarily on medical office buildings, hospitals, skilled nursing facilities, senior housing and other healthcare-related facilities. The REIT commenced its initial public offering in February 2016 and has raised approximately $37 million in investor equity since inception, according to a filing with the Securities and Exchange Commission.