Ventas closed a new, $2.75 billion unsecured, revolving credit facility and extended the maturity of its outstanding credit, the Chicago-based real estate investment trust announced Wednesday.
The credit facility initially is priced at 77.5 basis points over Secured Overnight Financing Rate, based on the company’s debt ratings.
Additionally, according to the REIT, the new credit facility includes a $1 billion “accordion feature” that permits the company to expand its borrowing capacity to a total of $3.75 billion.
“The successful closing of our credit facility further strengthens our liquidity, extends our debt maturities and lowers our borrowing costs,” Ventas Executive Vice President and Chief Financial Officer Robert F. Probst stated.
The action extends the maturity date of Ventas’ credit facility to 2028, which then can be extended for an additional year at the company’s option, subject to the satisfaction of certain conditions. The maturity date of the credit facility can be extended for an additional year to April 2029 at the company’s option.
The REIT noted that pricing was improved by five basis points over the previous unsecured revolving credit facility.
“The facility’s significant oversubscription underscores our portfolio’s advantaged position with durable demographic demand and our strong business outlook amid an unprecedented multi-year growth opportunity in senior housing,” Probst said. “We appreciate the support of our valued banking partners and their confidence in our business.”
BofA Securities, JPMorgan Chase Bank and Wells Fargo Securities were the joint bookrunners for the credit facility, according to Ventas. Bank of America is acting as the administrative agent, and JPMorgan Chase Bank and Wells Fargo Bank acted as the syndication agents.
In March, Ventas declared a quarterly dividend of $0.45 per common share.
