Ventas closes four-year $2.75 billion credit facility with accordion

By Taylor Fox

New York, Feb. 1 – Ventas, Inc. closed a new four-year $2.75 billion unsecured credit facility, according to a news release.

The credit facility was oversubscribed, with strong support from 24 new and incumbent financial institutions.

“Ventas’s successful completion of this transaction reinforces our ample liquidity, extends our debt maturities and improves our borrowing costs,” said Ventas executive vice president and chief financial officer, Robert F. Probst.

The facility is initially priced at 82.5 basis points over Libor, based on the company’s debt ratings, a five bps improvement from pricing under its previous unsecured revolving credit facility, which was set to mature in April 2021.

The maturity date of the new facility is January 2025 and can be extended for an additional year at the company’s option, subject to the satisfaction of certain conditions.

At closing, the new credit facility was substantially undrawn, providing the company with nearly $2.7 billion of available borrowing capacity.

The facility also includes a $1 billion accordion feature that permits the company to expand its borrowing capacity to a total of $3.75 billion.

Underscoring the company’s commitment to environmental, social and governance leadership, the credit facility includes a reduction in borrowing costs based on achievement of specific sustainability-linked metrics.

BofA Securities, Inc. and JPMorgan Chase Bank, NA are the joint bookrunners.

Bank of America, NA is the administrative agent and JPMorgan Chase Bank, NA is the syndication agent.

The real estate investment trust for housing and health care properties is based in Chicago.

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