NEWTON, Mass.– Diversified Healthcare Trust (Nasdaq: DHC) has closed a new $150 million secured revolving credit facility, reinforcing its liquidity position and financial flexibility. The deal is backed by 14 senior housing communities comprising 2,632 living units managed by Five Star Senior Living, a division of AlerisLife Inc.
The revolving credit line has an initial term of four years, with two optional six-month extensions subject to certain conditions. It carries an interest rate tied to the Secured Overnight Financing Rate (SOFR), plus a margin ranging from 250 to 300 basis points depending on DHC’s net leverage ratio. The transaction reflects a per-unit property valuation of approximately $184,000.
“This new facility further strengthens our financial position following the full repayment of our 2025 notes through refinancing and asset sales,” said Matt Brown, Chief Financial Officer and Treasurer of DHC. “The average per-unit valuation highlights the quality of our senior living portfolio, and we value the continued support of our lending partners as we pursue our long-term strategy.”
The facility is intended to support DHC’s general business needs and underscores the company’s ability to leverage high-quality senior housing assets for financing. The senior housing communities involved are part of DHC’s SHOP (senior housing operating portfolio), considered a key growth area in its real estate holdings.
Citibank, N.A. served as Administrative Agent, Lead Arranger, and Book Running Manager on the transaction. Co-Documentation Agents included Bank of America, N.A., Morgan Stanley Bank, N.A., PNC Bank, National Association, and Royal Bank of Canada.
