Loan & DebtMay 27, 2026, 05:17 PM
National HealthCare Secures $525M Credit Facility for Acquisition
AI Summary
National HealthCare Corporation (NHC) entered into a new $525.0 million senior unsecured Credit Agreement with Bank of America, N.A. and other lenders. This facility comprises a $475.0 million term loan and a $50.0 million revolving credit facility, intended to partially finance the acquisition of certain assets and real property from National Health Investors, Inc. The acquisition is anticipated to close in the third quarter of 2026, around July 1, 2026, subject to customary closing conditions. The new agreement will replace NHC's existing credit facility.
Key Highlights
- National HealthCare secured a new $525.0 million senior unsecured Credit Agreement.
- The facility includes a $475.0 million term loan and a $50.0 million revolving credit facility.
- The revolving facility has a $5.0 million sublimit for letters of credit and $15.0 million for swingline loans.
- Funds will partially finance the acquisition of assets and real property from National Health Investors (NHI).
- The term loans will amortize in quarterly installments of approximately $5.9 million.
- Borrowings will bear interest based on Term SOFR or a base rate, plus an applicable margin (1.25%-1.75% for Term SOFR).
- The acquisition is expected to close in Q3 2026, around July 1, 2026.
- The existing credit facility dated August 1, 2024, will be terminated upon initial funding.
Price Impact
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