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KeyBank Agents Physicians Realty Trust New $400MM Credit Facility

September 19, 2014, 07:44 AM
Filed Under: Real Estate

Physicians Realty Trust, a self-managed healthcare real estate company, announced it has closed on a new unsecured revolving credit facility and paid off its secured revolving credit facility. The Unsecured Revolving Credit Facility increases the company’s borrowing capacity to $400 million from the $200 million allowed under the Secured Revolving Credit Facility. The Unsecured Revolving Credit Facility provides an accordion feature allowing for an additional $350 million of capacity, subject to customary terms and conditions, resulting in a maximum borrowing capacity of $750 million.

The Unsecured Revolving Credit Facility has a maturity date of September 18, 2018 and includes a one-year extension option. Borrowings under the Unsecured Revolving Credit Facility bear interest on the outstanding principal amount at a rate equal to LIBOR plus 1.50% - 2.20%, an improvement from the Secured Revolving Credit Facility, which had a rate equal to LIBOR plus 2.65% – 3.40%. In addition, the Unsecured Revolving Credit Facility includes an unused fee equal to 0.15% or 0.25% per annum, which is determined by usage under such facility. In the event that the company achieves at least one investment grade ratings from either S&P or Moody's, the company may elect to reduce the applicable percentage for borrowings.

“We believe the favorable pricing and increased size of this new facility underscore the bank market’s recognition of our growth trajectory, track record of performance, and disciplined approach to investments,” stated Jeff Theiler, CFO of Physicians Realty Trust. “The unsecured nature of the new credit facility should also allow for increased ease of execution as we continue to seek out high quality assets to enhance shareholder value.”

The Unsecured Revolving Credit Facility was arranged by KeyBanc Capital Markets Inc., Regions Capital Markets, and BMO Capital Markets as the Co-Book Runners. KeyBank National Association was the Administrative Agent. Regions Capital Markets and BMO Capital Markets were the Co-Syndication Agents. Other lenders included; Bank of America, N.A., Royal Bank of Canada, RBS Citizens, N.A., Morgan Stanley Bank, N.A., Raymond James Bank, Comerica Bank, Branch Banking & Trust Company, and Synovus Bank.

Physicians Realty Trust is a self-managed healthcare real estate company organized to acquire, selectively develop, own and manage healthcare properties that are leased to physicians, hospitals and healthcare delivery systems. The Company invests in real estate that is integral to providing high quality healthcare. The Company is a Maryland real estate investment trust and elected to be taxed as a REIT for U.S. federal income tax purposes beginning with its short taxable year ended December 31, 2013.


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