Global Medical REIT Amends and Restates Credit Facility
~ Increases Capacity by $150 million and Reduces Credit Spreads~
~Moves from Secured to Unsecured Facility and Extends Maturity ~
BETHESDA, Md.--(BUSINESS WIRE)-- Global Medical REIT Inc. (NYSE: GMRE) (the “Company” or “GMRE”), a net-lease medical office real estate investment trust (REIT) that owns and acquires purpose-built healthcare facilities and leases those facilities to strong healthcare systems and groups with leading market share, today announced that it has amended and restated its credit facility to, among other things, (i) increase the Company’s overall borrowing capacity by $150 million to $750 million, (ii) reduce its borrowing costs across its pricing grid, (iii) convert to an unsecured facility, and (iv) extend the initial maturity date of the revolver component of the facility to four years (with two, six-month extension options) and the maturity date of the term loan component to five years. The amended and restated credit facility is comprised of a $400 million revolver, a $350 million term loan and a $500 million accordion feature.
The Joint Lead Arrangers and Joint Book Runners for the facility were JPMorgan Chase Bank, N.A., BMO Capital Markets Corp., Wells Fargo Securities, LLC, Citizens Bank, N.A., KeyBanc Capital Markets Inc. and Truist Securities, Inc. JPMorgan Chase Bank, N.A. serves as Administrative Agent, BMO Capital Markets Corp. and Wells Fargo Bank, N.A. serve as Syndication Agents, Citizens Bank, N.A., KeyBank National Association and Truist Bank serve as Documentation Agents and Huntington National Bank serves as Senior Managing Agent for the facility. Associated Bank, National Association and People’s United Bank, N.A. also participate in the credit facility.
Jeffrey M. Busch, Chief Executive Officer stated, “Our newly amended unsecured facility with its increased capacity and extended term provides us with the financial flexibility to support our continued growth and the lower interest rate spreads reflects our improved credit profile. As we continue to scale, we will work to improve our cost of capital to further enhance our accretive investment strategy. We’d like to thank all our banking partners for their vote of confidence in GMRE.”
The Company currently has interest rate swaps that fix the LIBOR component of the interest rate on the term loan through August 2023 and intends to enter into additional forward starting interest rate swaps to fix the LIBOR component of the interest rate on the term loan through its maturity in May 2026.
ABOUT GLOBAL MEDICAL REIT
Global Medical REIT Inc. is net-lease medical office REIT that acquires purpose-built specialized healthcare facilities and leases those facilities to strong healthcare systems and physician groups with leading market share.
This press release contains statements that are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “anticipate”, “believe”, “expect”, “estimate”, “plan”, “intend”, “outlook”, and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time those statements are made and/or management’s good faith belief as of that time with respect to future events. These forward-looking statements are subject to various risks and uncertainties, not all of which are known to the Company and many of which are beyond the Company’s control, which could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. These risks and uncertainties are described in greater detail in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, which was filed with the SEC on March 8, 2021, and elsewhere in the reports the Company has filed with the SEC. Unless legally required, the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The Company undertakes no obligation to update these statements after the date of this release.
Source: Global Medical REIT Inc.
Released May 3, 2021