Other significant terms of the new credit facility from Wachovia Bank are an 18-month term; recourse loan secured by all properties not otherwise secured by other loans; borrowings up to $7.5 million in the aggregate upon lender approval; quarterly principal payments of $500,000; interest calculated at 325 basis points over LIBOR or an alternate rate of Wachovia Bank prime plus 0.5% at borrower's election; and distributions to shareholders limited to 90% of funds from operations.
The deal will give ElderTrust more flexibility in improving its capital structure, says D. Lee McCreary, Jr., ElderTrust's president and chief executive officer.
ElderTrust invests in real estate properties used in the healthcare services industry, principally along the East Coast, and has interests in 32 properties.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
