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Global Medical REIT Extends Debt Maturities and Hedges Rates

Global Medical REIT Inc. has just announced an amended and restated credit facility that extends the maturities of its borrowings. The company has extended the initial maturity date of its existing $400 million revolver component to October 2029, with two six-month extension options available, potentially extending the maturity to October 2030. Additionally, the maturity of the existing $350 million term loan has been extended and divided into three term loans.

Furthermore, the company has entered into $350 million of forward starting interest rate swaps to fully hedge the SOFR component of the three term loan tranches through their respective maturities. The rates for the interest rate swaps range from 3.24% to 3.32%, resulting in effective interest rates of 4.75% to 4.84%.

At the closing of the amended and restated credit facility, the weighted average term of the company’s debt, including the drawn revolver component, was 4.4 years, a significant increase from the previous 1.3 years.

The joint lead arrangers and joint book runners for the facility were JPMorgan Chase Bank, N.A., BMO Capital Markets Corp., Wells Fargo Securities, LLC, Citizens Bank, N.A., Huntington National Bank, and Truist Securities, Inc. JPMorgan Chase Bank, N.A. also serves as the administrative agent.

Global Medical REIT Inc. is a net-lease medical REIT that acquires healthcare facilities and leases them to physician groups and regional and national healthcare systems. Following these announcements, the company's shares moved -0.97%, and are now trading at a price of $30.73. If you want to know more, read the company's complete 8-K report here.

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