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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160718005320/en/
Source: Senior Housing Properties Trust