Welltower Announces Upsizing and Maturity Extension of $5.0 Billion Senior Unsecured Line of Credit

Rhea-AI Summary

Welltower Inc. (NYSE: WELL) has closed on an amended $5.0 billion senior unsecured revolving line of credit, strengthening its liquidity position and extending its debt maturity profile. The facility includes a $3.0 billion tranche maturing in 2028 and a $2.0 billion tranche maturing in 2029. This follows recent positive credit rating outlook revisions by S&P Global and Moody's. The new facility offers improved pricing, with loans currently bearing interest at 72.5 basis points over the adjusted SOFR rate and an annual facility fee of 12.5 basis points. Welltower's total available credit facilities now reach approximately $7.5 billion, positioning the company for continued growth and disciplined capital allocation.

Positive

• Upsized revolving credit facility to $5.0 billion, improving liquidity
• Extended debt maturity profile to 2028 and 2029
• Improved pricing on the new credit facility
• Positive credit rating outlook revisions from S&P Global and Moody's
• Increased total available credit facilities to approximately $7.5 billion
• Option to extend facility maturity for two successive six-month terms
• Ability to upsize credit facilities by an additional $1.25 billion on an uncommitted basis

Negative

• None.

TOLEDO, Ohio, July 29, 2024 /PRNewswire/ -- Welltower® Inc. (NYSE: WELL) (the "Company" or "Welltower") today announced that it has closed on an amended $5.0 billion senior unsecured revolving line of credit ("Revolving Facility"). Through the Amendment, the Company will bolster its already strong liquidity position and extend its well-staggered debt maturity profile, while also achieving improved pricing. The closing of the Revolving Facility follows recent revisions to the Company's credit rating outlook to positive from stable by both S&P Global and Moody's, both of which cited strong seniors housing industry tailwinds and a materially improved balance sheet.

"The successful upsizing and extension of our line of credit not only highlights the strength of Welltower's balance sheet and unparalleled access to efficiently priced capital, but also the powerful growth outlook of our business," said Tim McHugh, Welltower's Chief Financial Officer. "Thanks to the support of 29 participating financial institutions, the Company is well positioned with ample liquidity and historically low leverage to continue delivering shareholder value through disciplined capital allocation in any capital markets environment."

The Revolving Facility is comprised of an amended $3.0 billion tranche ("RCF A") that matures on July 24, 2028 and an amended $2.0 billion tranche ("RCF B") that matures on July 24, 2029. RCF A will replace the Company's existing $3.0 billion tranche that was scheduled to mature on June 4, 2025, while RCF B will replace the Company's existing $1.0 billion tranche that was scheduled to mature on June 4, 2026. At the Company's option, RCF A may be extended for two successive terms of six months each. Based on Welltower's current credit ratings, the loans under the Revolving Facility currently bear interest at 72.5 basis points over the adjusted SOFR rate and carry an annual facility fee of 12.5 basis points. In addition, the Revolving Facility incorporates adjustments in the interest rate and facility fee based upon certain reductions in greenhouse gas emissions.

The Company also has an existing $1.0 billion USD term loan and a $250 million CAD term loan ("Term Facility") that are scheduled to mature on July 19, 2026. At the Company's option, either Term Facility tranches may be extended for two successive terms of six months each.

Welltower has an ability, on an uncommitted basis, to upsize the Revolving Facility and the Term Facility by up to an additional $1.25 billion. The closing of the Amendment increases the Company's total available credit facilities, assuming all incremental facilities are fully funded, to approximately $7.5 billion in aggregate. The Company is permitted to borrow up to $1.25 billion under the Revolving Facility in certain foreign currencies.

BofA Securities, Inc., JPMorgan Chase Bank, N.A., Wells Fargo Securities LLC and KeyBanc Capital Markets Inc. were the U.S. Joint Lead Arrangers for the Revolving Facility. Bank of America, N.A., JPMorgan Chase Bank, N.A. and Wells Fargo Securities LLC were the Co-Syndication Agents for the Revolving Facility. 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), a real estate investment trust ("REIT") and S&P 500 company headquartered in Toledo, Ohio, is driving the transformation of health care infrastructure. Welltower 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 owns interests in properties concentrated in major, high-growth markets in the United States, Canada and the United Kingdom, consisting of seniors housing and post-acute communities and outpatient medical properties. More information can be found at www.Welltower.com.

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SOURCE Welltower Inc.

FAQ

What is the new size of Welltower's (WELL) revolving credit facility?

Welltower (WELL) has closed on an amended $5.0 billion senior unsecured revolving line of credit.

When do the new tranches of Welltower's (WELL) credit facility mature?

The $3.0 billion tranche (RCF A) matures on July 24, 2028, and the $2.0 billion tranche (RCF B) matures on July 24, 2029.

What is the current interest rate for Welltower's (WELL) new credit facility?

Based on Welltower's current credit ratings, the loans under the Revolving Facility bear interest at 72.5 basis points over the adjusted SOFR rate and carry an annual facility fee of 12.5 basis points.

How much can Welltower (WELL) potentially increase its credit facilities?

Welltower has the ability to upsize its Revolving Facility and Term Facility by up to an additional $1.25 billion on an uncommitted basis.