Welltower Announces Upsizing and Extension of $5.2 Billion Unsecured Credit Facility

Rhea-AI Summary

Welltower Inc. (NYSE: WELL) announced the closing of a $4.0 billion unsecured revolving line of credit and a $1.0 billion term loan, enhancing its liquidity and extending its debt maturity profile. The amendments also improve pricing across the Term Facility, allowing a reduction in interest rates tied to greenhouse gas emissions. The company can increase its credit facilities by up to $1.25 billion, bringing total available credit to over $6.5 billion. This move supports Welltower's aim to maintain financial flexibility and create shareholder value.

Positive

• Increased total available credit to over $6.5 billion.
• Improved pricing on Term Facility loans with 5-basis point reduction.
• Extended debt maturity profile with new loan terms.

Negative

• None.

TOLEDO, Ohio, June 16, 2022 /PRNewswire/ -- Welltower® Inc. (NYSE: WELL) (the "Company" or "Welltower") today announced that it has closed on an amended $4.0 billion unsecured revolving line of credit ("Revolving Facility"), $1.0 billion term loan and CAD 250 million term loan (collectively, "Term Facility"). Through the Amendment, the Company will enhance its already strong liquidity position and extend its well-staggered debt maturity profile, while also achieving improved pricing across the Term Facility.

"Today's announcement highlights our commitment to further enhancing our already strong balance sheet and liquidity profile, while maintaining maximum financial flexibility," said Tim McHugh, Welltower's Chief Financial Officer. "The increased size, extended term and more efficient pricing position the Company to continue to create significant value for our shareholders in any macroeconomic environment. We appreciate the significant commitment offered by the 31 participating financial institutions and the continued support of our banking partners."

The Revolving Facility is comprised of an existing $3.0 billion tranche ("RCF A") that matures June 4, 2025 and an amended $1.0 billion tranche ("RCF B") that matures on June 4, 2026, which will replace the Company's existing $1.0 billion RCF B that was scheduled to mature on June 4, 2023. Both Revolving Facility tranches may be extended for two successive terms of six months at the Company's option. Based on Welltower's current credit ratings, the loans under the Revolving Facility currently bear interest at 77.5 basis points over the adjusted SOFR rate. In addition, the Revolving Facility permits a reduction in the interest rate upon meeting certain reductions in greenhouse gas emissions. Based on Welltower's current credit ratings, the Revolving Facility currently carries an annual facility fee of 15 basis points.

The Company also closed on a $1.0 billion term loan and a CAD 250 million term loan that each mature on July 19, 2026 and will replace the Company's existing $500 million term loan and CAD 250 million term loan that were scheduled to mature on July 19, 2023. Both Term Facility tranches may be extended for two successive terms of six months at the Company's option. Based on Welltower's current credit ratings, the loans under the Term Facility bear interest at 85.0 basis points over the adjusted SOFR rate, which represents a five-basis point improvement from pricing under the Company's previous Term Facility. In addition, the Term Facility permits a reduction in the interest rate upon meeting certain reductions in greenhouse gas emissions.

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 Amendment increases the Company's total available credit, assuming all incremental facilities are funded, to over $6.5 billion in aggregate. The Company is permitted to borrow up to $1.0 billion of the Revolving Facility in certain foreign currencies.

BofA Securities, Inc., JPMorgan Chase Bank, N.A., KeyBanc Capital Markets Inc. and Wells Fargo Securities LLC were the U.S. Joint Lead Arrangers for the RCF A and BofA Securities, Inc., KeyBanc Capital Markets Inc. and Wells Fargo Securities LLC were the U.S. Joint Lead Arrangers for the RCF B and Term Facilities. BofA Securities, Inc., JPMorgan Chase Bank, N.A., KeyBanc Capital Markets Inc. and RBC Capital Markets were the Canadian Joint Lead Arrangers for the RCF A and BofA Securities, Inc., KeyBanc Capital Markets Inc. and RBC Capital Markets were the Canadian Joint Lead Arrangers for the RCF B and Term Facilities. BofA Securities, Inc. and JPMorgan Chase Bank, N.A. were the Joint Book Runners for the RCF A and BofA Securities, Inc. was the Sole Book Runner for the RCF B and Term Facilities. Bank of America, N.A. and JPMorgan Chase Bank, N.A. were the Co-Syndication Agents for the RCF A and Bank of America, N.A. was the Sole Syndication Agent for the RCF B and Term Facilities. KeyBank National Association is the Administrative Agent and Credit Agricole Corporate and Investment Bank is 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 significance of Welltower's $4.0 billion revolving credit facility announcement on June 16, 2022?

Welltower's announcement signifies enhanced liquidity and an extended debt maturity profile, which positions the company for financial stability.

How does Welltower's amended credit facility impact its financial strategy?

The amended credit facility improves pricing and allows for potential interest rate reductions linked to greenhouse gas emissions, indicating a commitment to sustainability.

What is the maturity schedule for Welltower's new loans?

The new loans include tranches maturing on June 4, 2025, and June 4, 2026, which replace loans maturing in 2023.

How much can Welltower potentially increase its credit facilities?

Welltower can upsize its Revolving Facility and USD term loan by up to $1.25 billion, and the CAD term loan by up to CAD 250 million.