National Healthcare Properties Announces Closing of New $550 Million Senior Unsecured Credit Facility

Rhea-AI Summary

National Healthcare Properties (Nasdaq: NHPAP) closed a new $550 million senior unsecured credit facility on December 11, 2025, consisting of a $400 million revolving credit facility and a $150 million term loan maturing in December 2028. The facility carries interest at SOFR + 1.55%–2.10% (margin tied to leverage), includes two one‑year extension options and an accordion to increase capacity by up to $450 million (totaling up to $1 billion) subject to conditions.

Proceeds repaid a $330 million secured term loan maturing December 2026; future borrowings are planned for acquisitions, working capital and general corporate purposes. Joint bookrunners and agents include Wells Fargo and BMO.

Positive

• New credit facility of $550 million closed
• Revolver of $400 million plus $150 million term loan
• Accordion increases capacity up to $1 billion
• Repaid $330 million secured term loan maturing Dec 2026
• Interest margin of SOFR +1.55%–2.10% (leverage-based)

Negative

• Facility is unsecured, potentially higher future refinancing risk
• Exposure to SOFR volatility affecting interest costs
• Term loan and revolver mature in Dec 2028, creating medium-term refinancing need

Key Figures

New credit facility $550 million Total senior unsecured credit facility size maturing December 2028

Revolving facility $400 million Revolving credit component of new facility

Term loan $150 million Term loan component of new facility

Accordion feature $450 million Additional borrowing capacity, raising total to up to $1 billion

Maximum capacity $1 billion Total potential borrowing under facility including accordion

Interest margin 1.55%–2.10% Margin over SOFR depending on leverage

Repaid term loan $330 million Existing secured term loan maturing December 2026 repaid

Market Reality Check

$19.33 Last Close

Volume Volume 3,407 is below the 20-day average of 7,721 ahead of this announcement. low

Technical Shares at $19.33 are trading above the 200-day MA of $16.20 and sit 1.13% below the 52-week high of $19.55.

Peers on Argus

Peers showed mixed moves: DOC up 0.42%, while OHI, VTR, and WELL declined between -0.59% and -2.8%, indicating no clear sector-wide trend around this financing news.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Nov 18	Management change	Positive	-0.4%	Appointment of Andrew T. Babin as CFO and Treasurer.
Nov 05	Earnings update	Positive	+0.3%	Q3 2025 results with higher FFO/AFFO and improved leverage.
Oct 29	Earnings timing	Neutral	+0.1%	Announcement of Q3 2025 earnings release and webcast schedule.
Sep 19	Dividend declaration	Positive	+0.3%	Declaration of quarterly preferred stock dividends and payment dates.
Aug 06	Earnings update	Neutral	-1.4%	Q2 2025 mixed results with net loss but strong FFO growth and debt cuts.

Pattern Detected

Recent news with clear financial implications (earnings, dividends) often aligned modestly with price, while leadership changes and mixed earnings saw some divergence.

Recent Company History

Over the last few months, National Healthcare Properties reported Q2 and Q3 2025 results showing improving FFO and AFFO, continued debt reduction of about $83.1M, and declared regular preferred dividends payable on October 15, 2025. The company also announced a CFO transition effective November 18, 2025. Price reactions to earnings and dividend news were generally modestly positive, while leadership change and earlier mixed earnings saw small declines. Today’s new credit facility fits the ongoing balance sheet and capital structure optimization narrative.

Market Pulse Summary

This announcement details a new $550M senior unsecured credit facility, including a $400M revolver and $150M term loan, replacing a $330M secured term loan and extending maturity to 2028 with capacity up to $1B. It follows recent earnings where total debt was about $1.0B and net leverage near 8.9x. Investors may track how this added flexibility supports acquisitions, deleveraging, and progress on the company’s broader capital structure goals.

Key Terms

senior unsecured credit facility financial

"announced that it has closed a $550 million senior unsecured credit facility"

A senior unsecured credit facility is a bank loan or line of credit that a company can draw on for cash needs but that is not backed by specific assets; ‘senior’ means it gets paid before junior or subordinated debts if the company defaults. Think of it as a prioritized IOU from banks without a pledged asset as collateral. Investors watch this because it affects a company’s short‑term liquidity, borrowing cost and the order in which creditors are repaid in distress, all of which influence credit risk and equity value.

revolving credit facility financial

"comprised of a $400 million revolving credit facility and a $150 million term loan"

A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.

term loan financial

"comprised of a $400 million revolving credit facility and a $150 million term loan"

A term loan is a type of loan that is borrowed for a set period of time, with a fixed schedule for repaying the money, usually in regular payments. It matters to investors because it represents a company's borrowing costs and financial stability; reliable repayment of these loans can indicate strong financial health, while difficulties may signal potential risks.

accordion feature financial

"The Credit Facility includes an “accordion feature” enabling NHP to increase"

An accordion feature is a clause in a loan or financing agreement that allows a company to expand the size of a credit line or the amount of securities available under the same contract without drafting a completely new deal. Like a suitcase that can be extended to hold more items, it gives a company quick flexibility to raise extra money, which can help fund growth but may increase debt or dilute existing shareholders—so investors watch it for changes in risk and ownership.

SOFR financial

"Amounts outstanding under the Credit Facility bear interest at SOFR plus a margin"

The Secured Overnight Financing Rate (SOFR) is a market benchmark that measures the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Investors watch SOFR because it acts like a speedometer for short-term interest costs—affecting loan rates, bond yields and the pricing of interest-rate contracts—so movements change borrowing expenses, cash returns and the value of interest-sensitive investments.

AI-generated analysis. Not financial advice.

NEW YORK, Dec. 11, 2025 (GLOBE NEWSWIRE) -- National Healthcare Properties, Inc. (Nasdaq: NHPAP / NHPBP) (the “Company” or “NHP”) announced that it has closed a $550 million senior unsecured credit facility (“Credit Facility”), comprised of a $400 million revolving credit facility and a $150 million term loan, maturing in December 2028.

The Credit Facility includes an “accordion feature” enabling NHP to increase the total borrowing capacity by up to an additional $450 million to $1 billion as well as two one-year extension options, all subject to certain conditions. Amounts outstanding under the Credit Facility bear interest at SOFR plus a margin between 1.55% to 2.10%, depending on the Company’s leverage. NHP used borrowings under the Credit Facility to pay off its existing $330 million secured term loan maturing in December 2026 and expects to use future borrowings for acquisitions, working capital and general corporate purposes.

Michael Anderson, Chief Executive Officer and President, noted, “The new Credit Facility strengthens our balance sheet and liquidity position as we continue to execute on our long-term growth strategy. This is an important first step in establishing a more flexible and efficient capital structure while also extending our debt maturity profile. We appreciate the support and confidence that our lending partners have placed in NHP.”

“The new Credit Facility provides current and future financial capacity to execute on our senior housing operating properties pipeline while offering flexibility to further our deleveraging strategy in a disciplined manner,” said Andrew Babin, Chief Financial Officer and Treasurer.

Wells Fargo Securities, LLC and BMO Bank N.A. served as the Joint Bookrunners with Wells Fargo Bank, National Association acting as the Administrative Agent. Wells Fargo Securities, LLC, BMO Bank N.A., Capital One, National Association, Citizens Bank, N.A., Fifth Third Bank, National Association, Huntington National Bank, KeyBanc Capital Markets Inc. and Royal Bank of Canada served as the Joint Bookrunners. Capital One, National Association, Citizens Bank, N.A., Fifth Third Bank, National Association, Huntington National Bank, KeyBank National Association, and Royal Bank of Canada served as Documentation Agents. Greenberg Traurig, LLP served as counsel to NHP.

About National Healthcare Properties, Inc.

National Healthcare Properties, Inc. (Nasdaq: NHPAP / NHPBP) is a publicly registered real estate investment trust focused on acquiring a diversified portfolio of healthcare real estate, with an emphasis on seniors housing and outpatient medical facilities located in the United States. Additional information about NHP can be found on its website at nhpreit.com.

Forward-Looking Statements

This press release may contain “forward-looking” statements as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements concern and are based upon, among other things, the potential growth of NHP’s portfolio; the sale of properties; the performance of its operators/tenants and properties; its ability to enter into agreements with new viable tenants for vacant space on favorable terms, or at all; its occupancy rates; its ability to acquire, develop and/or manage properties; its ability to make distributions to shareholders; its policies and plans regarding investments, financings and other matters; its tax status as a real estate investment trust; its critical accounting policies; its ability to appropriately balance the use of debt and equity; its ability to access capital markets or other sources of funds; and its ability to finance and complete, and the effect of, future acquisitions. When NHP uses words such as “may,” “will,” “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties. NHP’s expected results may not be achieved, and actual results may differ materially from expectations. This may be a result of various factors, including, but not limited, the risks and uncertainties described in the section titled Risk Factors of its most recent Annual Report on Form 10-K for the year ended December 31, 2024 and all other filings with the Securities and Exchange Commission. Finally, NHP assumes no obligation to update or revise any forward-looking statements or to update the reasons why actual results could differ from those projected in any forward-looking statements.

Contacts

Investors and Media:
Email: ir@nhpreit.com

FAQ

What did NHPAP announce on December 11, 2025 regarding a credit facility?

NHPAP closed a $550 million senior unsecured credit facility made up of a $400 million revolver and a $150 million term loan maturing Dec 2028.

How can NHPAP increase the borrowing capacity of the new credit facility?

The facility includes an accordion feature allowing up to an additional $450 million, raising capacity to $1 billion subject to conditions.

What interest rate terms apply to NHPAP's new credit facility?

Amounts bear interest at SOFR plus a margin of 1.55% to 2.10%, with the margin varying based on the company's leverage.

What did NHPAP use proceeds from the new facility to repay?

NHPAP used borrowings to repay its existing $330 million secured term loan that matured in Dec 2026.

What will NHPAP use future borrowings from the facility for?

The company expects to use future borrowings for acquisitions, working capital, and general corporate purposes.

Who served as joint bookrunners and administrative agent on the NHPAP facility?

Wells Fargo Securities and BMO Bank served as joint bookrunners; Wells Fargo Bank acted as Administrative Agent, with multiple banks as documentation agents.