NEWPORT BEACH, Calif., Oct. 20 /PRNewswire-FirstCall/ -- Nationwide Health Properties, Inc. , a leading healthcare real estate investment trust (REIT), today announced the closing of a new $700 million senior unsecured credit facility that includes both a $600 million revolving facility with a three year maturity and an option on NHP's part to extend for one year and a five-year, $100 million term loan. This credit facility replaces the company's existing $400 million senior unsecured revolving credit facility due to mature in April 2007. At closing, NHP's current investment grade credit ratings will provide for an all-in drawn pricing of 110 basis points over LIBOR on the revolving piece and the term loan.
Commenting on the transaction, Chief Financial Officer Abdo Khoury said, "We are very pleased that the transaction was oversubscribed by $240 million for a total of $840 million in commitments which demonstrated a high level of confidence in the company and its prospects. We decided to upsize the facility to $700 million in order to provide greater financial flexibility and to take advantage of favorable pricing that is 27.5 basis points below the all-in cost of our current facility. We are also pleased with the syndication effort that brought in nine new banks and resulted in expanded commitments from twelve of our fifteen existing lenders."
The new facility was jointly arranged and syndicated by Banc of America Securities LLC and J.P. Morgan Securities Inc. JPMorgan Chase Bank, N.A. will serve as the Administrative Agent and Bank of America, N.A. will serve as the Syndication Agent. Key Bank, UBS and Wells Fargo are Co-Documentation Agents, Calyon is Senior Managing Agent, Wachovia and Emigrant Bank are Co-Managing Agents and LaSalle Bank and U.S. Bank are the Co-Agents. Fourteen other banks are also participants in providing the credit line.
Nationwide Health Properties, Inc. is a real estate investment trust that invests in senior housing and long-term care facilities. The Company has investments in 425 facilities in 39 states. For more information on Nationwide Health Properties, Inc. visit our website at http://www.nhp-reit.com.
Certain information contained in this news release includes forward-looking statements. Forward-looking statements include statements regarding our expectations, beliefs, intentions, plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements which are not statements of historical facts. These statements may be identified, without limitation, by the use of forward-looking terminology such as "may," "will," "anticipates," "expects," "believes," "intends," "should" or comparable terms or the negative thereof. All forward-looking statements included in this news release are based on information available to us on the date hereof.
These statements speak only as of the date hereof, and we assume no obligation to update such forward-looking statements for any reason or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. These statements involve risks and uncertainties that could cause actual results to differ materially from those described in the statements. These risks and uncertainties include (without limitation) the following: deterioration in the operating results or financial condition, including bankruptcies, of our tenants; occupancy levels at certain facilities; changes in the ratings of our debt securities; access to the capital markets and the cost of capital; government regulations, including changes in the reimbursement levels under the Medicare and Medicaid programs; the general distress of the healthcare industry; the effect of economic and market conditions and changes in interest rates; the amount and yield of any additional investments; our ability to meet acquisition goals; the ability of our operators to repay deferred rent or loans in future periods; the ability of our operators to obtain and maintain adequate liability and other insurance; our ability to attract new operators for certain facilities; our ability to sell certain facilities for their book value; changes in or inadvertent violations of tax laws and regulations and other factors that can affect real estate investment trusts and our status as a real estate investment trust; and the risk factors described in our annual report on Form 10-K filed with the SEC on February 24, 2005.
CONTACT: Abdo H. Khoury
Chief Financial Officer (949) 718-4400
Nationwide Health Properties, Inc.CONTACT: Abdo H. Khoury, Chief Financial Officer of Nationwide HealthProperties, Inc., +1-949-718-4400
Web site: http://www.nhp-reit.com/
