National Health Investors Signs Credit Agreement with Wells Fargo Bank

National Health Investors, Inc. (NYSE:NHI) announced on October 24, 2024, that the company has entered into an Amended and Restated Credit Agreement with Wells Fargo Bank, National Association, as administrative agent, and various financial institutions as lenders and agents. This Agreement, providing aggregate revolving loan commitments of $700 million, replaces the Existing Credit Agreement dated March 31, 2022. The new Revolving Credit Facility, maturing on October 24, 2028, offers the option to increase loan commitments to a total of $1.0 billion, subject to lender approval.

As of the Effective Date, $307.4 million of the Revolving Credit Facility was utilized, with provisions for letters of credit up to $30 million and swingline loans up to $30 million. The Credit Agreement, backed by certain company subsidiaries, sets borrowing interest rates based on various options, including Term SOFR, Daily SOFR, or base rates, each with specific margins determined by the company’s credit rating.

Additionally, the Credit Agreement imposes customary covenants and financial maintenance benchmarks, such as debt ratios, tangible net worth requirements, EBITDA to fixed charges ratio, and others. Failure to meet these could trigger events of default, allowing lenders to demand immediate repayment of outstanding obligations under the Credit Agreement.

Simultaneously, National Health Investors has also amended its existing Term Loan Agreement, aligning its provisions with those of the Credit Agreement. The Term Loan of $200 million matures on June 16, 2025, with its outstanding balance reported at $200.0 million as of October 24, 2024.

The company noted that some lenders or their affiliates offering commercial banking services have supported and may continue to support National Health Investors with financial advisory and investment banking services as part of their standard operations.

While the descriptions of the Credit Agreement and Amendment have been summarized here, the full terms and conditions will be filed as exhibits in the Company’s upcoming Annual Report on Form 10-K for the year ending December 31, 2024.

This concludes the report on National Health Investors Inc.’s recent financial developments as outlined in the 8-K SEC Filing on October 24, 2024.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read National Health Investors’s 8K filing here.

About National Health Investors

Incorporated in 1991, National Health Investors, Inc (NYSE:NHI) is a real estate investment trust specializing in sale, leasebacks, joint-ventures, senior housing operating partnerships, and mortgage and mezzanine financing of need-driven and discretionary senior housing and medical investments. NHI's portfolio consists of independent living, assisted living and memory care communities, entrance-fee retirement communities, skilled nursing facilities, and specialty hospitals.