Global Medical REIT Inc. has recently announced amendments to its credit facility, including an extension of loan maturities and the implementation of forward starting interest rate swaps to hedge term loans. The company's debt metrics have evolved significantly as a result.
The initial maturity date of the existing $400 million revolver component has been extended to October 2029, with two six-month extension options available, potentially stretching the maturity to October 2030. Additionally, the existing $350 million term loan A has been restructured into three tranches, with maturities in October 2029, October 2030, and April 2031.
In connection with the amended credit facility, the company entered into $350 million of forward starting interest rate swaps to fully hedge the SOFR component of the three term loan A tranches. The effective interest rates for these swaps range from 4.75% to 4.84%. The existing $350 million term loan A fixed rate SOFR swaps remain in place, resulting in an all-in fixed interest rate of 2.85% on this debt through the swap maturities in April 2026.
Upon closing of the amended and restated credit facility, the weighted average term of the company's debt, including the drawn revolver component, was reported as 4.4 years, indicating a substantial increase from the previous 1.3 years.
The joint lead arrangers and 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. 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 -2.76%, and are now trading at a price of $31.03. For more information, read the company's full 8-K submission here.
