The objectives of the Credit Facility are for the Company to increase this share to 8.3% by the end of 2021, to 12.3% by the end of 2022, to 16.3% by the end of 2023, to 17.3% by the end of 2024 and to 19.3% by the end of 2025. For each year in which the company reaches its target, it receives the credit discount of one basis point the following year; If it is short, the reduction disappears. Stephen Boyd, a senior director at Fitch Ratings, said bonds and sustainably tied credit facilities have been “quite a trend” lately, gaining popularity in the corporate world because they take advantage of demand from investors and lenders, with some price advantage and a generally limited downward trend. Doug Conn, executive director and corporate credit strategist at SMBC Nikko, said in an interview that the benefits for businesses and lenders of sustainably linked credit facilities go beyond prices. The credit agreement continues to include a term credit facility totalling $250,000,000 with a term term ending June 10, 2023. The credit agreement shall also include a rotating loan sub-facility and a letter of credit sub-facility for a maximum of 10% each of the total revolving credit obligations under the credit agreement. The credit agreement provides for an accordion function that will allow the co-partner company to increase credit capacity up to an additional $500,000,000, subject to customary conditions, resulting in a potential maximum lending capacity of $1,750,000,000 (an increase of $1,600,000,000 under the previous loan agreement). Doctors Realty Trust John T. Thomas President and Chief Executive Officer (214) 549-6611 jtt@docreit.com REIT`s “Green” Revolving Credit Facility Is Part of a Growing Trend MILWAUKEE, Wisconsin–(BUSINESS WIRE)–Physicians Realty Trust (NYSE: DOC) (the “Company”, the “Trust”, “we”, “us” and “our”), a self-managed investment trust for healthcare real estate, announced today that it has entered into a third amended and amended credit agreement (the “Credit Agreement”). Extension of the term of the credit agreement from September 18, 2022 to September 24, 2025 (renewable for two periods of 6 months). In addition, the Loan Agreement reduces interest margins, increases the amount of obligations under the Revolving Credit Facility from $850,000,000 to $1,000,000,000, and amends certain terms and conditions under these Terms to provide greater flexibility to the Company and its subsidiaries (including the operating partnership).
Under the credit agreement, the bonds will bear interest at an interest rate equal to LIBOR plus 0.725% to 1.40% (a reduction from 0.775% to 1.45%) for the revolving credit facility and LIBOR plus 0.85% to 1.65% (unchanged) from the term credit facility. The credit agreement also provides for borrowing at a base rate increased from 0.00% to 0.40% (reduction from 0.00% to 0.45%) for the revolving credit facility and a base rate increased from 0.00% to 0.65% (unchanged) for the term credit facility. The applicable interest margin depends on the current solvency of the operating company. The loan agreement contains the usual conditions for replacing LIBOR. The credit agreement shall also include a sustainability component in which the pricing of revolving credit facilities may be reduced if the entity obtains certain sustainability ratings determined by an independent assessment by a third party. Jeffrey N. Theiler Executive Vice President and Chief Financial Officer (414) 367-5610 jnt@docreit.com Investors are encouraged to visit the Investor Relations section of the Company`s website (www.docreit.com) for more information, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to such reports filed or filed pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934. Were. in the current version, press releases, additional information packages and investor presentations. A key difference between green bonds and sustainable credit facilities is that demand for green bonds is driven in part by mutual funds and other investors with environmentally sustainable investment strategies. In contrast, lenders in revolving credit facilities for businesses are banks that typically hold the debt issued through the facilities on their balance sheets, Boyd of Fitch said. Denien said the company`s advisors at JPMorgan Chase & Co.
wells Fargo Securities LLC told him that about 10 other REITs had included sustainability goals in their revolving credit facilities, with the concept gaining popularity over the past two years. Others include Healthpeak Properties Inc. in 2019, Invitation Homes Inc. in 2020 and Ventas Inc. and Empire State Realty Trust Inc. in 2021 – the latter closed days after Duke`s deal. A real estate investment trust that owns warehouse and logistics real estate is one of the latest companies to tie the pricing of its revolving credit facility to sustainability goals, which market participants say is part of a trend towards environmental sensitivity in financial markets. Duke Realty Corp. announced on March 29 that it had refinanced the facility, scheduled for March 2025, with loan commitments from 13 banks and capacity of up to $1.2 billion.
The loan will carry an annual Libor interest rate plus 0.775%, and Duke will save one basis point in price over the years of meeting targets for the percentage of green properties in its portfolio. Note: We do not provide technical support for developing or debugging scripted download processes. Jeff Theiler, Executive Vice President and Chief Financial Officer of the Trust, commented: “We appreciate the strong support and excellent relationships we have established with our existing lenders, all of whom have chosen to participate in this change. In addition to extending the maturity date of the revolving component of the credit facility until 2025, this transaction reduces interest costs and provides additional flexibility to support the company`s growth. This press release contains statements that are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, as amended under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of words such as “anticipate”, “believe”, “expect”, “estimate”, “plan”, “outlook”, “continue”, “intend” and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical fact. These forward-looking statements may include statements about the Company`s strategic and operational plans, the Company`s ability to generate internal and external growth, future prospects, expected cash returns, capitalization rates or returns on real estate, the expected completion of real estate acquisitions, the ability to execute its business plan and the impact of the coronavirus and its variants, including the delta variant (COVID-19). Pandemic on company activities, included. Although forward-looking statements reflect our beliefs in good faith, they are not a guarantee of future performance. Forward-looking statements should not be construed as a guarantee of future performance or results and are not necessarily accurate indications of when or to what extent such performance or results will be achieved.
Forward-looking statements are based on information available at the time such statements are made and/or management`s good faith belief at that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed or implied in the forward-looking statements. These forward-looking statements are subject to various risks and uncertainties, not all of which are known to the Company and many of which are beyond the Company`s control, which could cause actual results to differ materially from these statements. These risks and uncertainties are described in more detail in the Company`s filings with the Securities and Exchange Commission (the “Commission”), including, but not limited to, the Company`s annual and periodic reports and other documents filed with the Commission. Except as required by law, the Company disclaims any obligation to update any forward-looking statements after the date of this press release, whether as a result of new information, future events or otherwise. .