Epr Properties Announces Commitments for New Amended and Restated $1.0 Billion Revolving Credit Facility Repays $400.0 Million Term Loan Facility
September 23, 2021 at 08:43 am EDT
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EPR Properties announced that it has received commitments from its existing lenders for a new amended and restated $1.0 billion, four-year senior unsecured revolving credit facility. The new facility, which the Company expects will close in early fourth quarter, will replace the Company's existing $1.0 billion senior unsecured revolving credit facility and $400.0 million senior unsecured term loan facility. The Company currently expects the new facility to provide for an initial maximum principal amount of borrowing availability of $1.0 billion with an "accordion" feature under which the Company may increase the total maximum principal amount available by $1.0 billion, to a total of $2.0 billion, subject to lender consent. The Company also currently expects the new facility to have the same pricing terms and financial covenants as its existing facility (with improved valuation of certain asset types), as well as customary covenants and events of default. The Company expects that it will have two options to extend the maturity date of the new credit facility by an additional six months each (for a total of 12 months), subject to paying additional fees and the absence of any default. The Company expects to use borrowings under the new facility for general business purposes, including the acquisition of experiential properties consistent with its current strategy. In connection with receiving the commitments for the new facility, and in furtherance of the Company's strategy to obtain investment grade ratings on its senior long-term unsecured debt, the Company repaid its $400.0 million term loan facility using cash on hand. Immediately subsequent to this repayment, the Company had in excess of $130.0 million of cash on hand and nothing borrowed on its existing $1.0 billion senior unsecured revolving credit facility. Completion of the new facility is subject to lender review and approval of definitive documentation.
EPR Properties is a diversified experiential net lease real estate investment trust (REIT), specializing in select enduring experiential properties in the real estate industry. The Company operates through two segments: Experiential and Education. The Experiential segment consists of approximately 166 theatre properties, 58 eat and play properties, 23 attraction properties, 11 ski properties, seven experiential lodging properties, one gaming property, three cultural properties, and 20 fitness and wellness properties. The Companyâs Education segment consists of property types, which include 61 early childhood education center properties, and nine private school properties. The Company's investment portfolio includes ownership of and long-term mortgages on Experiential and Education properties. The Company has investments in approximately 44 states. All of the Company's owned single-tenant properties are leased under long-term, triple-net leases.