Welltower announced a couple of moves to significantly increase its near-term liquidity. With all the uncertainty going around right now, that seems to be a prudent move. As of March 20, 2020, the REIT had $338 million of cash and cash equivalents and about $1.5 billion of available borrowing capacity under its unsecured revolving credit facility. Now, Welltower has added a two-year unsecured term loan of $1.0 billion, bearing an interest rate of 30-day LIBOR +1.20%. The company will also have the right to increase the loan amount by an additional $200 million. Proceeds from the loan will be used to repay borrowings under Welltower’s unsecured revolving credit facility and commercial paper program, as well as to fund future investment and for general corporate purposes.
Also helping to relieve the company from any potential cash crunch has been the proceeds from dispositions that so far total $694 million. Finally, Welltower has no material unsecured notes maturing until 2023. With all the uncertainty these days, that is a very good position to be in.
