CHARLOTTE, NORTH CAROLINA – AUGUST 9, 2018 – Flagship Healthcare Trust, Inc. (“Flagship REIT”) announced that it has entered into a new secured term and revolving credit facility with Bank of America, N.A. (the “Secured Credit Facility”). This Secured Credit Facility provides the ability to increase Flagship REIT’s borrowing capacity up to $125 million through an accordion feature, subject to certain terms and conditions.
Managed by an affiliate of Flagship Healthcare Properties, LLC (“FHP”), Flagship REIT was launched in January 2018 with interests in more than 30 healthcare properties with a market value over $250 million. Flagship REIT plans to grow its portfolio through adding core-plus, value-add, and development projects in support of and in partnership with healthcare providers, allowing them to focus their capital and resources to deliver the highest quality patient care.
“We are pleased to be making a significant step forward in terms of the Company’s capital flexibility and liquidity,” said Brannen Edge, President and Chief Operating Officer of FHP. “This new facility allows us to more efficiently pursue growth opportunities, reduce our borrowing costs and strengthen our balance sheet. In addition, the structure aligns with Flagship REIT’s stated intention to achieve an overall leverage ratio of 50-55% in the coming years. Russell Brown, FHP’s Senior Vice President of Investments, remarked, “We have developed new relationships with a number of high-quality, institutional lending teams from several financial institutions. Yet, the flexibility and the partnership offered by Bank of America, N.A. was the best fit for achieving Flagship REIT’s specific objectives. We look forward to growing these relationships in the years ahead as Flagship continues its growth.”
Charles Campbell, Chief Executive Officer of FHP, concluded, “Our conversion to a private REIT structure continues to pay dividends. Establishing this credit facility with Bank of America, N.A. provides increased flexibility, efficiency and savings to our REIT and its investors, as well as enhanced stability and more certainty of execution for the providers that occupy our buildings.”
Palladian Realty Capital, LLC provided advisory services to FHP in conjunction with the Secured Credit Facility.