New Senior Investment Group Inc. (New Senior or the Company) (NYSE:SNR) announced today that it has paid off $125 million of mortgage debt with a combination of cash on hand and the proceeds from a new revolving credit facility (the Credit Facility) secured by eight private pay senior housing facilities. This transaction lowers the Companys leverage and interest expense.
Susan Givens, Chief Executive Officer of the Company, said: We are pleased to announce the entry into our first revolving credit facility, which represents a positive step in the evolution of our capital structure. The credit facility gives us flexibility to more efficiently manage our balance sheet going forward and will result in further interest rate savings.
Borrowings under the Credit Facility bear interest at LIBOR plus 2.50%. The Credit Facility matures in December 2021 with a one-year extension option, while a majority of the debt repaid was scheduled to mature in 2019 and 2020. The Credit Facility may be increased from $125 million to $300 million, subject to customary terms and conditions. The Credit Facility was arranged by KeyBanc Capital Markets, Inc. KeyBank National Association is serving as the Administrative Agent.
The Credit Facility brings the total amount of the Companys refinancing activity in the fourth quarter of 2018 to nearly $850 million, with estimated interest expense savings of approximately $14 million annually and an improvement in the Companys weighted average debt maturity from three years to over five years. As a result of these refinancing initiatives, the Company has no significant near-term maturities with only $50 million coming due for 2019 “ 2021.
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ABOUT NEW SENIOR New Senior Investment Group (NYSE:SNR) is a publicly-traded real estate investment trust with a diversified portfolio of senior housing properties located across the United States. As of September 30, 2018, New Senior is one of the largest owners of senior housing properties, with 133 properties across 37 states. More information about New Senior can be found at www.newseniorinv.com.