CareTrust REIT Expands Credit Facility to $1.2 Billion
CareTrust REIT Expands Credit Facility to $1.2 Billion
CareTrust REIT, Inc. (NYSE:CTRE) has recently announced a significant increase in its unsecured revolving credit facility, which has now been doubled to an impressive $1.2 billion. This pivotal decision underscores the company’s commitment to maintaining robust financial health. The refinancing process involved a collaborative effort among several leading financial institutions, including KeyBanc Capital Markets as the Joint Lead Arranger and Administrative Agent, along with contributions from other major players such as BMO Capital Markets, JPMorgan Chase Bank, Bank of America, and Wells Fargo Securities, among others.
Rating Upgrade by S&P Global Ratings
In addition to expanding its financial facilities, CareTrust has also received an upgrade from S&P Global Ratings. The agency elevated CareTrust’s corporate rating to BB+ and upgraded its issue-level rating on unsecured notes to BBB-. This upgrade not only highlights CareTrust’s stable financial framework but also enhances its attractiveness to investors and partners in future endeavors.
Statements from Leadership
Bill Wagner, the Chief Financial Officer of CareTrust REIT, expressed his enthusiasm regarding this renewed credit facility. He stated, “Our renewed credit facility is supported by banks who have been with us from day one and also a few who are newer to our story. We are thrilled to have such a strong group who not only provide optionality for us but also seek to bring us valuable ideas to accelerate our growth. This credit facility provides a vital means for financing future acquisitions of any size.”
Furthermore, Dave Sedgwick, the Chief Executive Officer, shared insights into the company’s growth trajectory. He indicated that CareTrust aims to finalize approximately $1.5 billion in investments this year, a staggering figure that is nearly seven times the company’s annual average. Sedgwick remarked, “Today’s announcements bolster a historically strong position from which to build on this year’s momentum.” He also emphasized an active investment pipeline of around $350 million, excluding larger portfolio opportunities currently under evaluation.
About CareTrust REIT
CareTrust REIT, Inc. is a self-managed and publicly-traded real estate investment trust engaged in a diverse range of activities focused on skilled nursing, seniors housing, and other healthcare-related properties. The company operates a nationwide portfolio comprising long-term net- leased properties and continues to expand through both external growth and organic opportunities.
With the goal of enhancing its operational efficacy, CareTrust REIT works diligently to identify quality operators for its properties while actively pursuing growth potentials across the United States. This growth strategy positions CareTrust favorably within the evolving healthcare landscape. More information about CareTrust REIT can be found on their [website](https://www.caretrustreit.com) which is a treasure trove of details about their operations and future plans.
Frequently Asked Questions
What is the purpose of CareTrust REIT's expanded credit facility?
The expanded credit facility provides increased financial flexibility for future acquisitions and investments, ensuring the company is well-equipped to pursue growth opportunities.
How was CareTrust REIT's credit facility structured?
The facility was structured with support from multiple major banks, enhancing the company's borrowing capacity and ensuring strong financial partnerships.
What does the S&P Global Ratings upgrade mean for CareTrust?
The rating upgrade signals increased investor confidence in CareTrust’s financial stability and its capacity to meet obligations, which can help in attracting further investment.
What are CareTrust REIT’s future investment plans?
CareTrust plans to close on approximately $1.5 billion in investments this year, which shows a significant increase compared to its average annual investments.
How does CareTrust REIT aim to achieve growth?
CareTrust focuses on acquiring quality properties and partnering with reliable operators while also exploring organic growth opportunities in the real estate sector.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
Disclaimer: The content of this article is solely for general informational purposes only; it does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice; the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. The author's interpretation of publicly available data shapes the opinions presented here; as a result, they should not be taken as advice to purchase, sell, or hold any securities mentioned or any other investments. The author does not guarantee the accuracy, completeness, or timeliness of any material, providing it "as is." Information and market conditions may change; past performance is not indicative of future outcomes. If any of the material offered here is inaccurate, please contact us for corrections.