EPR Properties (NYSE: EPR) has announced a significant change in its financial structure with the introduction of a new amended and restated $1.0 billion unsecured revolving credit facility. This facility, which matures on October 2, 2028, replaces the company’s existing $1.0 billion senior unsecured revolving credit facility. The new facility provides for an initial maximum principal amount of borrowing availability of $1.0 billion with an "accordion" feature under which the company may increase the total maximum principal amount available by $1.0 billion, to a total of $2.0 billion, subject to lender consent.
In addition to including customary covenants and events of default, the new facility generally reduces the interest rate payable on outstanding loans, eliminates the tangible net worth covenant, modifies the secured debt to total asset value covenant, and simplifies the method used to value assets under the facility. Furthermore, the company is afforded two options to extend the maturity date of the new facility by an additional six months each, subject to paying additional fees and the absence of any default.
The company has stated that it expects to use borrowings under the new facility for general business purposes, including the acquisition of experiential properties consistent with its current strategy. Greg Silvers, President and CEO of EPR Properties, has expressed his satisfaction with the completion of this new credit facility, highlighting the enhanced borrowing flexibility and more favorable terms it provides.
EPR Properties is a leading diversified experiential net lease real estate investment trust (REIT) with total assets of approximately $5.6 billion across 44 states. The company focuses on real estate venues that create value by facilitating out-of-home leisure and recreation experiences, adhering to rigorous underwriting and investing criteria centered on key industry, property, and tenant level cash flow standards.
This development signifies a strategic move for EPR Properties, enhancing its financial foundation and borrowing flexibility as it continues to invest in experiential properties, in line with its long-term strategy. The market has reacted to these announcements by moving the company's shares 1.3% to a price of $49.35. If you want to know more, read the company's complete 8-K report here.
