CNL Healthcare Obtains $150M Term Loan A
October 6, 2021 | James Sprow
CNL Healthcare Properties Inc. disclosed that on Sept. 24 the company entered into a new $150 million senior unsecured term loan A that is co-terminus with the company’s credit facility due May 2024 (subject to one 12-month extension), which includes a $250 million senior unsecured revolver and a $265 million senior unsecured term loan A.
Pricing is tied to a leverage-based grid at L+145-205, opening at L+185. The credit agreement also includes language for the secured overnight financing rate (Sofr) as a replacement benchmark rate.
KeyBanc Capital Markets, Truist Bank, and Fifth Third acted as joint lead arrangers. KeyBank is administrative agent.
Proceeds are earmarked to repay existing debt.
The facility is covered by a maximum leverage level of 60%, a minimum fixed charge coverage ratio set at 1.5x, a minimum total net worth level of $900 million, a maximum cash distribution ratio, a maximum secured debt covenant, a maximum secured recourse debt covenant, and an unsecured leverage covenant.
Source: S&P Global Intelligence
