Diversified Healthcare Prices $941 Mln Of Senior Secured Notes

(RTTNews) - Diversified Healthcare Trust (DHC), a real estate investment trust, said on Tuesday that it has priced $941 million of zero coupon senior secured notes due January 2026, with a 12-month extension option.

The net proceeds of $732 million expected from this transaction, scheduled to be closed on December 21, 2023 will be used to repay debts, and for general business purposes.

"Proceeds will be used to repay in full all 2024 maturities, including $450 million secured credit facility and $250 million of senior unsecured notes," DHC noted.

The notes will generate around $750 million in gross proceeds and will accrete at a rate of 11.25 percent annually, compounded semi-annually.

If the 12-month extension option is exercised, interest payments will be due semi-annually during the extension period at an initial interest rate of 11.25 percent with increase of 50 basis points every 90 days that the notes remain outstanding.

DHC was trading up by 1.86 percent at $3.29 per share in the pre-market trade on the Nasdaq.