TORONTO, Feb. 3, 2014 /CNW/ - HealthLease Properties Real Estate Investment Trust (HLP.UN) ("HealthLease" or "the REIT") announced today that it has increased and modified its secured operating line of credit (the "Facility") from $120 million to $250 million. The Facility is a revolving line of credit which has an initial term of 48 months. Up to $75 million of the Facility can be designated as a term loan for up to five years. The Facility provides for interest-only payments during the term and a borrowing rate of LIBOR (London Interbank Offer Rate) plus 235 to 300 basis points, depending on the total amount drawn. The REIT has provided a guarantee in respect of its subsidiaries' obligations under the Facility.
"We are pleased to announce this increase as it will support our acquisition and growth strategy in the coming years" stated Zeke Turner, President and Chief Executive Officer of HealthLease. "In addition it will help to further enhance our already strong financial position and provide us with increased financial flexibility."
The lending institutions participating in the Facility include BMO Capital Markets, PNC Capital Markets, National Bank of Canada, SunTrust, Siemens Financial Services, Regions Bank, Bank of America Merrill Lynch, Huntington National Bank, and Raymond James. Based on the security currently provided, HealthLease can borrow up to approximately $134.2 million under the Facility. At closing, $86.1 million was drawn on the facility.
About HealthLease Properties Real Estate Investment Trust
HealthLease Properties Real Estate Investment Trust (TSX: HLP.UN) owns one of the youngest and highest quality portfolios of seniors housing and care facilities with 12 properties located in two provinces of Canada and 33 properties located in seven states of the United States for a total of 4,435 beds. The facilities are leased to experienced tenant operators who have significant operational experience in the U.S. and Canada. The leases are structured as long-term and triple-net: features that provide stability and dependability to the REIT's cash flow and distributions. The REIT's best-in-class portfolio of premier properties meets the growing demands of modern seniors by emphasizing features such as hotel-like design, private rooms and baths and hospitality-inspired amenities. For more information, visit www.hlpreit.com.
This news release contains forward-looking statements which reflect the REIT's current expectations regarding future events. The forward-looking statements involve risks and uncertainties, including those set forth in the REIT's Annual Information Form dated March 6, 2013 under the section "Risk Factors," a copy of which can be obtained at www.sedar.com. Actual results could differ materially from those projected herein. The REIT disclaims any obligation to update these forward-looking statements.
SOURCE: HealthLease Properties Real Estate Investment Trust
For further information:
Executive Vice President - Finance
HealthLease Properties REIT
(416) 815-0700 ext. 258