NEWTON, Mass.--(BUSINESS WIRE)--Senior Housing Properties Trust (Nasdaq:SNH) today announced that it has closed on a $620 million mortgage loan that matures in August 2026. The loan is secured by two 15 story, class A life-science buildings, which include 1.65 million gross square feet of lab space, corporate office space, structured parking and street level retail located in Boston’s Seaport District. The buildings were acquired by SNH in May 2014 for $1.125 billion when their construction was completed, and they are 96% leased to Vertex Pharmaceuticals, Inc. through 2028.
The 10-year loan is non-amortizing and carries a fixed interest rate of 3.53% per annum. SNH expects to use the proceeds of this loan to repay a portion of the outstanding borrowings under the Company’s $1 billion unsecured revolving credit facility and for general business purposes. Following the repayment, there will be approximately $900 million available under SNH’s unsecured revolving credit facility.
“We are pleased to take advantage of the current low interest rate environment to term out the majority of the outstanding balance on our unsecured revolving credit facility and to extend the average maturity of our debt to 8.9 years,” said David Hegarty, SNH’s President and Chief Operating Officer. “We believe that this transaction also highlights the value and quality of our medical office and life-science portfolio.”
The loan financing was provided by Morgan Stanley and Citi. Eastdil Secured acted as SNH’s advisor and Skadden, Arps, Meagher & Flom LLP provided legal counsel to SNH in this transaction.
Senior Housing Properties Trust is a real estate investment trust, or REIT, which owns senior living communities, medical office buildings and wellness centers throughout the United States. SNH is managed by the operating subsidiary of The RMR Group Inc. (Nasdaq:RMR), an alternative asset management company that is headquartered in Newton, MA.
WARNING REGARDING FORWARD LOOKING STATEMENTS
THIS PRESS RELEASE INCLUDES STATEMENTS AND HAS IMPLICATIONS WHICH CONSTITUTE FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER SECURITIES LAWS. ALSO, WHENEVER SNH USES WORDS SUCH AS BELIEVES, EXPECTS, INTENDS, ANTICIPATES, ESTIMATES, WILL, MAY OR SIMILAR EXPRESSIONS, SNH IS MAKING FORWARD LOOKING STATEMENTS. THESE FORWARD LOOKING STATEMENTS ARE BASED UPON SNH’S CURRENT INTENT, BELIEFS, OR EXPECTATIONS, BUT THEY ARE NOT GUARANTEED TO OCCUR AND MAY NOT OCCUR FOR VARIOUS REASONS. ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE STATED OR IMPLIED BY FORWARD LOOKING STATEMENTS. FOR EXAMPLE:
- THIS PRESS RELEASE STATES THAT THERE WILL BE APPROXIMATELY $900 MILLION AVAILABLE UNDER SNH’S UNSECURED REVOLVING CREDIT FACILITY AFTER MORTGAGE PROCEEDS ARE USED TO REPAY A PORTION OF THE OUTSTANDING BALANCE. THE BALANCE OF THE CREDIT FACILITY MAY INCREASE OR DECREASE IN THE FUTURE DEPENDING ON ACTIONS OF THE COMPANY AND MAY HAVE AVAILABLITY LESSER OR GREATER THAN THE AMOUNT STATED.
THE INFORMATION CONTAINED IN SNH’S FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION, OR THE SEC, INCLUDING UNDER THE CAPTION “RISK FACTORS” IN SNH’S PERIODIC REPORTS OR INCORPORATED THEREIN, COULD CAUSE SNH’S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE STATED OR IMPLIED IN THIS PRESS RELEASE. SNH’S FILINGS WITH THE SEC ARE AVAILABLE AT THE SEC’S WEBSITE AT WWW.SEC.GOV.
FOR THIS REASON, AMONG OTHERS, INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE UPON FORWARD LOOKING STATEMENTS.
EXCEPT AS REQUIRED BY LAW, SNH DOES NOT INTEND TO UPDATE OR CHANGE ANY FORWARD LOOKING STATEMENTS AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE.
A Maryland Real Estate Investment Trust with transferable shares of
beneficial interest on the Nasdaq.
No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.