Banks Can’t Get Enough Sr. Housing

Seniors housing continues to gain favor in U.S. investment circles. Further proof of that fact was served up recently as one of the largest players in the space, Senior Housing Properties Trust, entered into a new $750 million bank facility.

The Newton, Mass.-based REIT (NYSE: SNH) replaced its previous $550 million unsecured revolving credit facility, which had a maturity date of December 31, 2011. The maturity date of the new facility is June 24, 2015, and includes a borrower’s option to extend the facility for one year to June 24, 2016.

 Here’s the kicker… the number of banks participating in the new facility increased from 18 to 26 this time around. Wells Fargo Securities, LLC and RBC Capital Markets, LLC are the joint lead arrangers for the new facility.

SNH principally owns private pay senior living communities and medical office buildings located throughout the US.

The new facility is pretty generous in its terms. Interest paid on drawings under the new facility is set at LIBOR plus 160 basis points, subject to adjustments based on changes to SNH’s credit ratings. The new facility also includes a feature under which the maximum borrowing may be increased to up to $1.5 billion in certain circumstances.

Banks participating in the new facility include:

Wells Fargo Bank, N.A.       Administrative Agent 

Royal Bank of Canada       Syndication Agent 

Bank of America, N.A.       Documentation Agent 

Regions Bank       Documentation Agent 

BBVA Compass Bank       Senior Managing Agent 

RBS Citizens, N.A.       Senior Managing Agent 

PNC Bank, N.A.       Senior Managing Agent 

Sumitomo Mitsui Banking Corporation       Lender 

TD Bank, N.A.       Lender 

Capital One, N.A.       Lender 

Comerica Bank       Lender 

Citigroup Global Markets       Lender 

UBS Loan Finance LLC       Lender 

Mega International Commercial Bank (New York)       Lender 

Taiwan Cooperative Bank       Lender 

The Bank of East Asia, Limited       Lender 

Chang Hwa Commercial Bank, Ltd.       Lender 

Hua Nan Commercial Bank, Ltd.       Lender 

Bank of Taiwan, Los Angeles Branch       Lender 

Chinatrust Commercial Bank Ltd.       Lender 

Bank of Communications Co., Ltd.       Lender 

First Hawaiian Bank       Lender 

Jefferies Finance LLC       Lender 

United Overseas Bank Limited       Lender 

Morgan Stanley Bank, N.A.       Lender 

First Commercial Bank New York Branch       Lender