TORONTO, June 6, 2017 /CNW/ - Mainstreet Health Investments Inc. (TSX:HLP.U) (the "Company") today announced that it has closed on an amendment to its existing credit facility. The amended secured credit facility (the "Facility") increases the total capacity from US$285 million to US$300 million. The Facility also extends the maturity date, while keeping interest rates in line with the current rates. A copy of the amended credit agreement will be made available on SEDAR at www.sedar.com.
The Facility is comprised of a five-year term loan of $200 million and a four-year $100 million revolving line of credit, which also has a one-year Company option for extension. This transaction will extend the facility maturity by an additional two years as well as extend the Company's weighted average debt maturity from 3.7 years to 5.3 years.
"We are thrilled with the continued commitment and investment from our credit partners," said Chief Financial Officer, Scott Higgs. "Recasting our credit facility is a key component in executing our long term financial strategy. Extending the debt maturity and laddering our obligations are steps to reducing risk and increasing certainty for our investors."
KeyBanc Capital Markets, and National Bank Financial Markets served as joint lead arrangers and joint bookrunners. KeyBank National Associate served as administrative agent. Other banks in the syndicate include BMO Harris Bank, CIT Bank, NA, Synovus Bank, First Financial Bank and Lake Forest Bank & Trust Company.
About Mainstreet Health Investments Inc.
Mainstreet Health Investments Inc. is a North American health care real estate company with a growing portfolio of high quality properties located in the United States and Canada. Our properties are operated by best-in-class health care providers primarily under long-term, triple net leases. Our mission is to create long-term shareholder value while providing an investment opportunity that matters. For more information, visit www.mainstreethealthinvestments.com.
Cautionary Statement Regarding Forward-Looking Information
This news release may contain forward-looking statements (within the meaning of applicable securities laws) relating to the business of the Company and the environment in which it operates. Forward-looking statements are identified by words such as "believe", "anticipate", "project", "expect", "intend", "plan", "will", "may", "estimate", "pro-forma" and other similar expressions. These statements are based on the Company's expectations, estimates, forecasts and projections and include, without limitation, statements regarding the Company's Facility. The forward-looking statements in this news release are based on certain assumptions. They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed under the heading "Risk Factors" in the Company's most recent annual information form, which is available at www.sedar.com. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the Company assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
SOURCE Mainstreet Health Investments Inc.
For further information: Scott Higgs, Chief Financial Officer, [email protected]