Welltower Announces Expanded $4.7 Billion Unsecured Credit Facility

Rhea-AI Summary

Welltower Inc. (NYSE: WELL) has secured a $4.0 billion unsecured revolving line of credit, replacing its previous $3.0 billion facility. The new Revolving Facility has two tranches, $1.0 billion maturing in 2023 and $3.0 billion in 2025, with the possibility of extending terms. This facility enhances Welltower's liquidity and financial flexibility, indicating strong support from 31 financial institutions. Notably, interest rates improve by 5 basis points, and an emphasis on reducing greenhouse gas emissions could further lower costs.

Positive

• New $4.0 billion revolving credit facility enhances liquidity, replacing a $3.0 billion facility.
• 5 basis points interest rate improvement increases cost efficiency.
• Oversubscribed facility indicates strong support from 31 financial institutions.

Negative

• None.

TOLEDO, Ohio, June 8, 2021 /PRNewswire/ -- Welltower® Inc. (NYSE: WELL) (the "Company" or "Welltower") today announced that it has closed an approximate $4.0 billion unsecured revolving line of credit ("Revolving Facility") which will replace the Company's existing line of credit of approximately $3.0 billion. The Revolving Facility was supported by 31 incumbent and new financial institutions and was heavily oversubscribed. The Company has two existing facilities ("Term Facilities") which will remain outstanding; a $500 million term loan and a CAD 250 million term loan ($206.6 million at exchange rates as of June 2, 2021).

The Revolving Facility is comprised of a $1.0 billion tranche that matures on June 4, 2023 and a $3.0 billion tranche that matures on June 4, 2025. Both tranches may be extended for two successive terms of six months at the Company's option. The Term Facilities mature on July 19, 2023. Based on Welltower's current credit ratings, the loans under the Revolving Facility bear interest at LIBOR plus 77.5 basis points, which represents a five basis point improvement from pricing under the Company's previous unsecured revolving line of credit. In addition, the Revolving Facility permits a reduction in the interest rate upon meeting certain reductions in greenhouse gas emissions. The Revolving Facility carries an annual facility fee of 15 basis points.

Welltower has an ability to upsize the Revolving Facility and the USD term loan by up to an additional $1.25 billion, in the aggregate, and the CAD term loan by up to an additional CAD 250 million. The closing of the Revolving Facility increases the Company's total available credit, assuming all incremental facilities are funded, to over $6 billion in aggregate. The Company is permitted to borrow up to $1.0 billion of the Revolving Facility in alternate currencies.

"Today's announcement demonstrates our continued focus on driving shareholder returns through a strong balance sheet and liquidity profile. This transaction also highlights the extraordinary support of our capital partners and we appreciate the significant commitment offered by the 31 participating financial institutions," said Tim McHugh, Welltower's Chief Financial Officer. "The expanded capacity and new extended term enhance our financial flexibility and exemplify Welltower's exceptional access to capital and balance sheet strength."

BofA Securities, Inc., JPMorgan Chase Bank, N.A., KeyBanc Capital Markets Inc. and Wells Fargo Securities LLC were the U.S. Joint Lead Arrangers and BofA Securities, Inc., JPMorgan Chase Bank, N.A., KeyBanc Capital Markets Inc. and RBC Capital Markets were the Canadian Joint Lead Arrangers. KeyBank National Association is the Administrative Agent. BofA Securities, Inc. and JPMorgan Chase Bank, N.A. were the Joint Book Runners and Bank of America, N.A. and JPMorgan Chase Bank, N.A. were the Co-Syndication Agents. Credit Agricole Corporate and Investment Bank was the Sustainability Structuring Agent.

About Welltower

Welltower Inc. (NYSE: WELL), an S&P 500 company headquartered in Toledo, Ohio, is driving the transformation of health care infrastructure. The Company invests with leading seniors housing operators, post-acute providers, and health systems to fund the real estate infrastructure needed to scale innovative care delivery models and improve people's wellness and overall health care experience. Welltower®, a real estate investment trust ("REIT"), owns interests in properties concentrated in major, high-growth markets in the United States, Canada, and the United Kingdom, consisting of seniors housing, post-acute communities and outpatient medical properties. More information is available at www.welltower.com.

Forward-Looking Statements

This press release may contain "forward-looking" statements as defined in the Private Securities Litigation Reform Act of 1995. When Welltower uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause Welltower's actual results to differ materially from Welltower's expectations discussed in the forward-looking statements. This may be a result of various factors, including, but not limited to, those factors discussed in Welltower's reports filed from time to time with the SEC. Welltower undertakes no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events or otherwise, or to update the reasons why actual results could differ from those projected in any forward-looking statements.

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SOURCE Welltower Inc.

FAQ

What is the amount of Welltower's new credit facility?

Welltower's new credit facility amounts to $4.0 billion.

When do the tranches of Welltower's credit facility mature?

The $1.0 billion tranche matures on June 4, 2023 and the $3.0 billion tranche on June 4, 2025.

How much interest does Welltower save with the new credit facility?

Welltower benefits from a 5 basis points improvement in interest rates with the new facility.

What is the total available credit for Welltower after this facility?

Welltower's total available credit rises to over $6 billion after the new facility.

Who were the joint lead arrangers for Welltower's credit facility?

The U.S. Joint Lead Arrangers included BofA Securities, JPMorgan Chase, KeyBanc Capital Markets, and Wells Fargo.