NEWPORT BEACH, Calif. (May 29, 2013) – American Healthcare Investors and Griffin Capital Corporation, the co-sponsors of Griffin-American Healthcare REIT II, Inc., announced today the expansion of the REIT’s existing unsecured revolving line of credit from $200 million to $450 million.
Existing lenders Bank of America, N.A., KeyBank National Association, RBS Citizens, N.A., and Comerica Bank are joined by new lenders Barclays Bank PLC, Fifth Third Bank, Wells Fargo Bank, N.A., Credit Agricole Corporate and Investment Bank and Sumitomo Mitsui Banking Corporation. The unsecured credit facility may be utilized to acquire, finance or re-finance properties, as well as for other corporate purposes, and may be increased to $650 million upon meeting certain conditions.
“Since January 2012, the portfolio of Griffin-American Healthcare REIT II has more than tripled in size to approximately $1.5 billion, based on aggregate purchase price, and we continue to source attractive acquisition opportunities and execute our investment strategy on behalf of stockholders,” said Jeff Hanson, principal of American Healthcare Investors and chairman and chief executive officer of Griffin-American Healthcare REIT II. “Thanks to our key lending relationships, Griffin-American Healthcare REIT II is well-equipped to continue its rapid growth.”
The unsecured credit facility matures on June 5, 2015, but may be extended for one additional year by Griffin-American Healthcare REIT II upon the satisfaction of certain conditions. At the option of the REIT’s operating partnership, draws under the facility bear interest at per annum rates equal to (1) the Eurodollar Rate plus a margin ranging from 2.0 percent to 3.0 percent based on the REIT’s consolidated leverage ratio or (2) the greater of Bank of America’s prime rate, the Federal Funds Rate plus 0.50 percent or the one-month Eurodollar Rate plus 1.0 percent, plus a margin ranging from 1.0 percent to 2.0 percent based on the REIT’s consolidated leverage ratio.
As of May 28, 2013, the entire $450 million remained available under the line of credit.
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