Global Medical REIT Inc., a Maryland corporation engaged primarily in the acquisition of licensed, state-of-the-art, purpose-built healthcare facilities and the leasing of these facilities to leading clinical operators with dominant market share, announced today that on December 2, 2016, the Company and certain of its subsidiaries reached agreement with BMO Harris Bank N.A. (“BMO”) on a senior revolving credit facility (the “Credit Facility”) that initially provides up to $75 million in revolving credit commitments. The Credit Facility includes an accordion feature that provides additional capacity, subject to the satisfaction of customary terms and conditions, of up to $125 million, for a total Credit Facility size of up to $200 million. The Company’s operating partnership, Global Medical REIT L.P., is the borrower under the Credit Facility, and the Company and certain of the operating partnership’s subsidiaries are guarantors of the obligations under the Credit Facility. The amount available to borrow from time to time under the Credit Facility is limited according to a quarterly borrowing base valuation of certain properties owned by subsidiaries of the Company.
As detailed in the credit agreement, the Credit Facility bears annual interest at a floating rate that is based on the Company’s consolidated leverage ratio, with a maximum rate of 300 basis points over LIBOR, and the Company is obligated to pay a quarterly fee that is based upon the average daily unused commitments. Additionally, the Company’s ability to borrow under the Credit Facility is subject to its ongoing compliance with a number of customary affirmative and negative covenants, as outlined in the credit agreement.
David Young, Chief Executive Officer of GMR, stated, “This Credit Facility provides us with important access to additional funding as we continue to deploy the remaining proceeds from our IPO to acquire healthcare facilities. We are pleased to have successfully completed this agreement with BMO. We are focused on continuing to pursue our robust pipeline of acquisition opportunities and feel that the access to additional funds that the Credit Facility provides enhances our ability to pursue a wider variety of potential transactions.”
Global Medical REIT Inc. is a Maryland corporation engaged primarily in the acquisition of licensed, state-of-the-art, purpose-built healthcare facilities and the leasing of these facilities to leading clinical operators with dominant market share.