Diversified Healthcare Trust announced the closing of a new $150 million secured revolving credit facility. The facility is secured by 14 seniors housing communities with 2,632 living units managed by Five Star Senior Living, the operating division of AlerisLife Inc. DHC has already paid its 2025 notes in full with refinancing and asset sale proceeds, so this revolving credit facility provides the company with enhanced liquidity and financial flexibility to support its general business needs.
The revolving credit facility has an initial term of four years, with two six-month extension options, subject to certain conditions, and bears interest at a rate equal to SOFR plus a spread of 250 to 300 basis points, depending on DHC’s net leverage ratio. In connection with the financing, the average per unit valuation of the communities was approximately $184,000.
Citibank, N.A. served as administrative agent, lead arranger and book running manager. Bank of America, N.A.,Morgan Stanley Bank, N.A., PNC Bank, National Association and Royal Bank of Canada acted as co-documentation agents.
