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HTA Announces $300M Term Loan Refi

PHOENIX—Healthcare Trust of America, Inc. announced this week that it had executed a new $300 million senior unsecured, four-year term loan.

By Kristian Seemeyer | Updated on January 10, 2014

PHOENIX—Healthcare Trust of America, Inc. announced this week that it had executed a new $300 million senior unsecured, four-year term loan, dubbed the new term loan. The new term loan replaces the existing $300 million term loan, the existing term loan, that was originally scheduled to mature in March 2016. The New Term Loan will have an initial maturity date of January 2018 and can be extended by HTA for up to 1 year, subject to certain conditions.

Based on HTA’s recent upgrade by Moody’s to Baa2 announced on December 19, 2013, the new term loan will be initially priced at LIBOR plus 120 bps. This represents a reduction of 65 bps from the borrowing cost on the existing term loan as of December 18, 2013. The ratings upgrade also reduced the borrowing rate and facility fees on HTA’s existing (i) $650 million revolving credit facility maturing in 2016 and (ii) $155 million term loan maturing in 2019. As a result, total interest expense savings on the current outstanding balances on these facilities are anticipated to total over $2.5 million in 2014.

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