Ventas Closes New $2.75 Billion Unsecured Credit Facility

Rhea-AI Summary

Ventas (NYSE: VTR) has successfully closed a new four-year $2.75 billion unsecured credit facility, which was oversubscribed with support from 24 financial institutions. This facility enhances liquidity, extends debt maturities, and reduces borrowing costs, with initial pricing set at 82.5 basis points over LIBOR. Nearly $2.7 billion remains available for borrowing. Additionally, the facility includes a $1 billion accordion feature and links borrowing costs to sustainability metrics, reflecting Ventas's commitment to ESG leadership.

Positive

• Successful completion of a $2.75 billion unsecured credit facility.
• Oversubscribed facility indicates strong market confidence.
• Initial pricing at 82.5 basis points over LIBOR, improving borrowing costs.
• Nearly $2.7 billion of available borrowing capacity.
• $1 billion accordion feature allows expansion of borrowing capacity.

Negative

• None.

Ventas, Inc. (NYSE: VTR) (“Ventas” or the “Company”) today announced that it has closed a new four-year $2.75 billion unsecured credit facility (the “Credit Facility”). The Credit Facility was substantially oversubscribed, with strong support from 24 new and incumbent financial institutions.

“Ventas’s successful completion of this transaction reinforces our ample liquidity, extends our debt maturities and improves our borrowing costs,” said Robert F. Probst, Ventas Executive Vice President and Chief Financial Officer. “We appreciate the enthusiastic support from our valued banking partners and their confidence in our firm, our future and the quality of our platform,” he added.

The Credit Facility is initially priced at 82.5 basis points over LIBOR, based on the Company’s debt ratings, a five basis point improvement from pricing under its previous unsecured revolving credit facility, which was set to mature in April 2021. The maturity date of the Credit Facility is January 2025 and can be extended for an additional year at the Company’s option, subject to the satisfaction of certain conditions.

At closing, the new Credit Facility was substantially undrawn, providing the Company with nearly $2.7 billion of available borrowing capacity.

The Credit Facility also includes a $1 billion “accordion feature” that permits the Company to expand its borrowing capacity to a total of $3.75 billion. Underscoring the Company’s commitment to Environmental, Social and Governance (ESG) leadership, the Credit Facility includes a reduction in borrowing costs based on achievement of specific sustainability-linked metrics.

BofA Securities, Inc. and JPMorgan Chase Bank, N.A. were the joint bookrunners for the Credit Facility. Bank of America, N.A. is serving as the Administrative Agent, and JPMorgan Chase Bank, N.A. acted as the Syndication Agent.

About Ventas

Ventas, an S&P 500 company, operates at the intersection of two powerful and dynamic industries – healthcare and real estate. As one of the world’s foremost Real Estate Investment Trusts (REIT), we use the power of capital to unlock the value of real estate, partnering with leading care providers, developers, research and medical institutions, innovators and healthcare organizations whose success is buoyed by the demographic tailwind of an aging population. For more than twenty years, Ventas has followed a successful strategy that endures: combining a high-quality diversified portfolio of properties and capital sources to manage through cycles, working with industry leading partners, and a collaborative and experienced team focused on producing consistent growing cash flows and superior returns on a strong balance sheet, ultimately rewarding Ventas shareholders. As of September 30, 2020, Ventas owned or managed through unconsolidated joint ventures approximately 1,200 properties.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210201005291/en/

FAQ

What is Ventas's new credit facility amount and terms?

Ventas has closed a new $2.75 billion unsecured credit facility with a four-year term, maturing in January 2025.

How much borrowing capacity is available to Ventas after the new credit facility?

After closing the credit facility, Ventas has nearly $2.7 billion of available borrowing capacity.

What are the financial benefits of Ventas's new credit facility?

The new credit facility improves borrowing costs, initially priced at 82.5 basis points over LIBOR, and extends debt maturities.

What sustainability initiatives are linked to Ventas's new credit facility?

The new credit facility includes a reduction in borrowing costs based on the achievement of specific sustainability-linked metrics.

Who were the joint bookrunners for Ventas's credit facility?

BofA Securities, Inc. and JPMorgan Chase Bank, N.A. served as the joint bookrunners for the credit facility.