In a notable development, Senior Housing Properties TrustSNH has expanded its unsecured revolving credit facility by $250 million, through partial exercise of the accordion feature. In addition, this Newton, MA-based real estate investment trust ("REIT") secured a new $200-million, unsecured term loan with a maturity period of 7 years.
In particular, Senior Housing Properties' commitments under the credit facility have been increased to $1 billion from the prior amount of $750 million. All other terms and conditions associated with the previous credit facility remain unaltered. Further, the creditors who have taken part in the credit arrangement remain unchanged.
On the other hand, the new $200-million unsecured term loan is slated to mature on Sep 28, 2022. The rate of interest on this loan facility has been set at London interbank offered rate ("Libor") plus 180 basis points. However, this rate of interest is subject to change according to the credit ratings of Senior Housing Properties. The loan also includes an accordion feature by which, maximum limit of the loan can be raised to $400 million in certain cases.
Senior Housing Properties currently has a Zacks Rank #3 (Hold). Investors interested in the REIT industry may consider stocks like CoreSite Realty Corp. COR , Iron Mountain Inc. IRM and Ashford Hospitality Prime, Inc. AHP . While both CoreSite Realty and Iron Mountain Incorporated sport a Zacks Rank #1 (Strong Buy), Ashford Hospitality holds a Zacks Rank #2 (Buy).