Care Capital splits from Ventas, gets $2 billion term loans, revolver

By Susanna Moon

Chicago, Aug. 21 – Care Capital Properties, Inc.’s wholly owned subsidiary Care Capital Properties, LP obtained a $600 million four-year unsecured revolving credit facility, a $600 million two-year unsecured term loan and an $800 million five-year unsecured term loan.

The company was spun off from Ventas, Inc. on Aug. 17 and also entered into the credit agreement with Bank of America, NA as administrative agent the same day, according to an 8-K filing with the Securities and Exchange Commission.

The revolver has sublimits for letters of credit and swingline loans of $50 million each, and it contains extension options for two additional six-month periods.

If, before the first anniversary of closing, Care Capital Properties, LP prepays the two-year term loan in an amount of more than $350 million, no less than $100 million and up to $250 million of the term loan that was prepaid in excess of $250 million will be added to the revolver commitments.

The credit agreement also includes an accordion that allows increasing the aggregate borrowing capacity to up to $2.5 billion.

All of the obligations under the agreement are senior unsecured obligations of Care Capital Properties, LP and are guaranteed by Care Capital Properties, Inc., Care Capital Properties GP, LLC and the majority of Care Capital Properties, LP’s subsidiaries.

If the borrower receives at least one investment-grade rating from either Moody’s Investor Services, Inc. or Standard & Poor’s Ratings Services, the guarantees by all of its subsidiaries will be released.

Interest on the revolving loans will initially be Libor plus 170 basis points based on leverage, and interest on the term terms will be Libor plus 160 bps.

Bank of America, JPMorgan Chase Bank, NA, Barclays Bank plc and Citizens Bank, NA are the swingline lenders and letter-of-credit issuers.

“CCP is poised for growth and success as a pure-play skilled nursing focused REIT,” Care Capital Properties, Inc. chief executive officer Raymond J. Lewis said in a company press release.

Ventas is a Chicago-based real estate investment trust for housing and health-care properties. Care Capital Properties is a skilled nursing focused REIT.

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