NEWTON, Mass.— Diversified Healthcare Trust (Nasdaq: DHC) has announced the closing of a new $150 million secured revolving credit facility, further enhancing the company’s liquidity and leveraging its senior housing operating portfolio.
The facility is secured by 14 senior housing communities totaling 2,632 living units. These properties are managed by Five Star Senior Living, the operating division of AlerisLife Inc. The credit line has an initial four-year term with two six-month extension options, subject to certain conditions. It carries an interest rate equal to SOFR plus a spread of 250 to 300 basis points, depending on DHC’s net leverage ratio. The financing reflects an average per-unit valuation of approximately $184,000.
“Having already repaid our 2025 notes in full with refinancing and asset sale proceeds, this new revolving credit facility strengthens our liquidity and financial flexibility,” said Matt Brown, Chief Financial Officer and Treasurer of DHC. “We also believe the average per unit valuation illustrates the high quality of our senior living assets. We greatly appreciate our lenders continued support as we advance our long-term strategy.”
Citibank, N.A. served as Administrative Agent, Lead Arranger, and Book Running Manager. Co-Documentation Agents included Bank of America, N.A., Morgan Stanley Bank, N.A., PNC Bank, National Association, and Royal Bank of Canada.
