Exhibit 99.1
Welltower Obtains Commitment for New $1.0 Billion Term Loan
3/23/2020 8:04:00 AM EDT
Company Increases Available Near-Term Liquidity to $3.5 Billion
NEW YORK, March 23, 2020 /PRNewswire/ — Welltower Inc. (NYSE: WELL) (“the Company”) today announced an update to its liquidity profile and further strengthening of its balance sheet. Following the activities outlined below, the Company has increased its available near-term liquidity to $3.5 billion.
As of March 20, 2020, the Company had $338 million of cash and cash equivalents and approximately $1.5 billion of available borrowing capacity under its unsecured revolving credit facility.
To further bolster near-term liquidity, Welltower today announced that it has successfully obtained atwo-year unsecured term loan (“Term Loan”) of $1.0 billion bearing interest at a rate of30-day LIBOR +1.20%, based on the company’s credit rating. Welltower will have the right to increase the amount under the Term Loan up to an additional $200 million. Proceeds from the Term Loan will be used to repay borrowings under the Company’s unsecured revolving credit facility and commercial paper program, to fund future investment opportunities, and for general corporate purposes.
Welltower continues to close on recently announced dispositions, as outlined in its fourth quarter 2019 earnings release. Through March 20, 2020, Welltower has received net proceeds totaling $694 million from dispositions.
Additionally, as of March 20, 2020, Welltower has forward sale agreements covering 6.8 million shares of common stock under our ATM program, at an initial weighted average price of $86.48 per share. Welltower, at its discretion, may settle the forward sale agreements through December 31, 2020, to generate up to $588 million in gross proceeds.
Following Welltower’s December 2019 bond issuances and the December 2019 early redemption of notes due November 25, 2020, the Company has no material unsecured notes maturing until 2023.
“The strength of Welltower’s balance sheet has always been a hallmark of the company and provided investors with assurance regarding our ability to meet all capital requirements and to create shareholder value,” commented Tim McHugh, Chief Financial Officer. “While we maintain unwavering confidence in our balance sheet, we believe it is prudent to take further steps to enhance our liquidity profile given current capital market conditions and the uncertain impact of theCOVID-19 pandemic. We believe today’s announcement is a testament to our operating platform and capital allocation discipline and will enable us to continue executing on our strategy amidst a volatile macroeconomic backdrop.”