Ventas, Inc. (VTR) - Get Report ("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.
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.
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