Welltower Announces Upsizing and Maturity Extension of $5.0 Billion Senior Unsecured Line of Credit
Ohio Pen/10269319

TOLEDO, Ohio, July 29, 2024 ~ Welltower Inc. (NYSE: WELL) has recently announced the successful closing of an amended $5.0 billion senior unsecured revolving line of credit, also known as the Revolving Facility. This move is expected to further strengthen the company's already robust liquidity position and extend its debt maturity profile, while also achieving improved pricing.

According to Tim McHugh, Chief Financial Officer of Welltower, this upsizing and extension of their line of credit not only showcases the strength of their balance sheet and access to efficiently priced capital, but also reflects the promising growth outlook for their business. He also expressed gratitude towards the 29 participating financial institutions for their support.

The Revolving Facility consists of two tranches - an amended $3.0 billion tranche (RCF A) that matures on July 24, 2028 and an amended $2.0 billion tranche (RCF B) that matures on July 24, 2029. RCF A will replace the existing $3.0 billion tranche that was set to mature on June 4, 2025, while RCF B will replace the existing $1.0 billion tranche that was scheduled to mature on June 4, 2026.

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Under current credit ratings, loans under the Revolving Facility will bear interest at a rate of 72.5 basis points over the adjusted SOFR rate and carry an annual facility fee of 12.5 basis points. The facility also includes adjustments in interest rates and fees based on reductions in greenhouse gas emissions.

In addition to the Revolving Facility, Welltower has an existing $1.0 billion USD term loan and a $250 million CAD term loan that are set to mature on July 19, 2026. The company has the option to extend either tranche for two successive terms of six months each.

Welltower also has the ability to upsize both the Revolving Facility and the Term Facility by an additional $1.25 billion on an uncommitted basis. With the closing of this amendment, the company's total available credit facilities, assuming full funding, now stands at approximately $7.5 billion.

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The U.S. Joint Lead Arrangers for the Revolving Facility were BofA Securities, Inc., JPMorgan Chase Bank, N.A., Wells Fargo Securities LLC and KeyBanc Capital Markets Inc. The Co-Syndication Agents were Bank of America, N.A., JPMorgan Chase Bank, N.A. and Wells Fargo Securities LLC. KeyBank National Association served as the Administrative Agent and Credit Agricole Corporate and Investment Bank acted as the Sustainability Structuring Agent.

This move comes after recent revisions to Welltower's credit rating outlook by both S&P Global and Moody's to positive from stable. Both agencies cited strong tailwinds in the seniors housing industry and a significantly improved balance sheet as reasons for the upgrade.

With this amended Revolving Facility in place, Welltower is well-positioned with ample liquidity and low leverage to continue delivering value to shareholders through disciplined capital allocation in any market environment.

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