Diversified Healthcare Trust closed a new $150 million secured revolving credit facility. The facility is secured by 14 senior housing communities with 2,632 living units managed by Five Star Senior Living, the operating division of AlerisLife Inc., and provides DHC with enhanced liquidity 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 served as Administrative Agent, Lead Arranger and Book Running Manager. Bank of America, Morgan Stanley Bank, PNC Bank, and Royal Bank of Canada acted as Co-Documentation Agents. 

Matt Brown, Chief Financial Officer and Treasurer of DHC, made the following statement: “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. 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.”