TORONTO, Dec. 20, 2018 /CNW/ - Invesque, Inc. (TSX:IVQ.U) (the "Company") today announced that it has signed a new US$400 million senior unsecured credit facility. KeyBanc Capital Markets, National Bank Financial Markets and BMO Capital Markets served as joint lead arrangers and joint bookrunners. The newly established unsecured credit facility (the "Facility") increases the total debt capacity from US$300 million on the Company's previous credit facility to US$400 million with the new Facility. The Facility is designed to complement the Company's growth strategies with an accordion feature to increase the size to up to US$750 million.
The Facility is comprised of a $200 million five-year term loan, and a $200 million four-year revolving line of credit. The revolving line of credit also has a one-year extension option for the Company. The facility greatly enhances the Company's debt profile by extending the aggregate weighted average debt maturity from 4.1 years (as reported at September 30, 2018) to 4.6 years. The restructuring of the Facility also reduces the Company's pricing spread by approximately 100 bps, which is expected to have a prolonged positive impact on the weighted average cost of debt to the Company.
"We are elated with the continued commitment and partnership from our credit partners," said Chief Financial Officer, Scott Higgs. "This new credit facility is validation from the credit markets that we have executed our growth and diversification strategy. The unsecured structure, improved pricing and extension of the debt maturity are measures that enhance our financial profile for investors. The additional capacity allows us to consolidate debt, while extending maturities and providing additional room for us to continue executing on our growth strategy."
KeyBanc Capital Markets, National Bank Financial Markets and BMO Capital Markets served as joint lead arrangers and joint bookrunners. KeyBank National Associate served as administrative agent.
Invesque is a health care real estate company with an investment thesis centered around the opportunity created by the global aging demographic trend. Invesque currently capitalizes on this opportunity by investing in a highly diversified portfolio of income generating health care properties located across the United States and Canada through long-term absolute net leases, joint ventures, and development capital. For more information, visit www.invesque.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:
This press release contains forward-looking information that reflects the current expectations of management about the future results and opportunities for the Company. Forward-looking statements generally can be identified by words such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "should", "plans", "project", or "continue" or similar expressions suggesting future outcomes or events. More particularly and without limitation, this press release contains forward looking statements and information concerning the Company's weighted average cost of debt. Such forward-looking statements reflect the Company's current beliefs and are based on information currently available to management. Although the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward looking statements and information because the Company can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties including the factors discussed under the heading "Risk Factors" in the Company's annual information form available at www.sedar.com, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof and to not use such forward looking information for anything other than its intended purpose. The Company undertakes no obligation to update publicly or revise any forward looking information, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE Invesque Inc.