American Healthcare Investors, LLC and Griffin Capital Corporation, the co-sponsors of Griffin-American Healthcare REIT IV, Inc., announced that the REIT and certain of its subsidiaries have entered into a new credit facility totaling $400 million with Merrill Lynch, Pierce, Fenner & Smith Incorporated, KeyBanc Capital Markets and Citizens Bank, National Association as joint lead arrangers and joint bookrunners. Bank of America, N.A. will serve as administrative agent, swing line lender and letters of credit issuer, KeyBank, National Association will serve as syndication agent and an additional letters of credit issuer and Citizens Bank, National Association will serve as an additional syndication agent.
The maximum principal amount of the credit facility may be increased to up to $650 million upon the request of Griffin-American Healthcare REIT IV and satisfaction of certain conditions. The credit facility may be utilized for refinancing existing debt and for general corporate purposes including, without limitation, property acquisitions.
"We are pleased with our new credit facility and lending partners," said Jeff Hanson, a founding principal of American Healthcare Investors and chairman and chief executive officer of Griffin-American Healthcare REIT IV. "This credit facility essentially replaces one that was due to mature in 2019 with better terms that we believe will benefit our investors and allow us to continue to accretively grow the portfolio of Griffin-American Healthcare REIT IV."
The credit facility matures on Nov. 19, 2021, but may be extended for one 12-month period during its term by Griffin-American Healthcare REIT IV upon the satisfaction of certain conditions, including payment of an extension fee. At the option of Griffin-American Healthcare REIT IV, draws under the credit facility bear interest at per annum rates equal to (1) (a) the Eurodollar Rate, as defined by the credit facility, plus (b) a margin ranging from 1.75 percent to 2.20 percent per annum based on the REIT's consolidated leverage ratio, or (2) (a) the greater of (i) Bank of America's prime rate, (ii) the Federal Funds Rate, as defined by the credit facility, plus 0.50 percent, (iii) the one-month Eurodollar Rate plus 1.00 percent, and (iv) zero percent, plus (b) a margin ranging from 1.75 percent to 2.20 percent based on the REIT's consolidated leverage ratio.
As of Nov. 15, 2018, Griffin-American Healthcare REIT IV's portfolio consisted of 58 medical office buildings, senior housing facilities and skilled nursing facilities located in 20 states comprised of approximately 3.4 million square feet of gross leasable area, as well as an interest in a joint venture which owns or operates a portfolio of integrated senior health campuses and ancillary businesses, acquired for an aggregate contract purchase price of approximately $807.6 million.1 Additionally, the company is currently pursuing approximately $211.6 million in additional pending acquisitions2 which would result in a total portfolio of approximately 96 healthcare buildings located in 21 states comprised of approximately 4.6 million square feet of gross leasable area upon the successful completion of these potential acquisitions.