Physicians Realty Trust, a self-managed healthcare real estate company today announced the closing of a $75 million line of credit with a $175 million accordion feature with a syndicate of banks led by Regions Bank, N.A., discusses its first acquisition agreement, and other recent developments.
"Physicians Realty Trust's initial portfolio, ability to access capital, and extensive relationships among physicians and other health care providers are enabling us to rapidly execute our business plan and providing us with opportunities to manage and increase our revenue and predictable cash flow. " commented John T. Thomas, President and CEO of Physicians Realty Trust. "We recently completed the successful execution of our initial public offering, including the underwriter's exercise of their overallotment option, resulting in $123.8 million in net proceeds."
Thomas continued, "With the closing of our new $75 million line of credit, and the net proceeds of our IPO, we are well capitalized to execute our business plan. As we grow and work to create value for the Company and its shareholders over the long run, we intend to maintain a focus on cultivating relationships with high quality health care providers, across the continuum of care, well positioned for growth and success in sustainable healthcare markets. With that in mind, we are excited to partner and form a long-term relationship with Phil Douglas and his LifeCare Holdings team, by reaching an agreement to purchase the facility leased by LifeCare Hospitals of North Texas, L.P. We look forward to closing this acquisition promptly and working with LifeCare as they grow and evolve their clinical business plan over time."
On August 29, 2013, the company and certain subsidiaries, entered into a $75.0 million senior secured revolving credit facility. Subject to the satisfaction of certain conditions, including additional lender commitments, the Company has the option to increase the borrowing capacity under the revolving credit facility up to $250.0 million. The revolving credit facility has a three-year term with an initial maturity date of August 29, 2016, with the option to extend the term to August 29, 2017. Borrowings under the senior secured revolving credit facility bear interest at rates generally between LIBOR plus 2.65% and LIBOR plus 3.40%.
Physicians Realty Trust is a self-managed healthcare real estate company recently organized to acquire, selectively develop, own and manage healthcare properties that are leased to physicians, hospitals and healthcare delivery systems. The company invests in real estate that is integral to providing high quality healthcare.