National Healthcare Properties Secures $550M Credit Facility from Wells Fargo
The new agreement replaces a previous loan, enhances financial flexibility, and allows potential expansion up to $1 billion.
December 12, 2025
National Healthcare Properties Enters New Credit Agreement to Bolster Growth and Liquidity
National Healthcare Properties has locked in a new $550 million credit facility, giving the company more room to manage liquidity, support acquisitions, and pursue strategic development. The deal, signed on December 11, 2025, includes a $400 million revolving line and a $150 million term loan, both backed by Wells Fargo and a group of lenders.
This move replaces an older secured facility from 2019, which has now been fully repaid. In doing so, the company shifts from a secured structure to an unsecured one, creating added flexibility and opening up potential for growth.
The facility runs through December 2028, with the option to tack on up to two additional one-year extensions. There’s also built-in capacity to scale—the operating partnership can request another $450 million under the same agreement, subject to certain conditions. That puts the total potential borrowing power at $1 billion.
National Healthcare Properties plans to use the credit for general corporate and working capital needs. That could mean paying down other debt, acquiring new real estate, or funding capital expenditures. The facility can be paid off early at any time, with no penalties—just standard breakage costs.
Rates are tied to the company's leverage ratio and offer a choice between base rate and SOFR-based options, with pricing that adjusts based on usage. If the revolving portion isn’t fully drawn, an unused commitment fee applies.
The company and several of its indirect subsidiaries are on the hook as guarantors. To stay in compliance, they’ll need to meet a set of financial covenants, tested quarterly. That includes:
- Minimum fixed charge coverage ratio
- Maximum total and secured leverage ratios
- Minimum tangible net worth
- Unencumbered leverage limits
- Unsecured interest coverage
- Minimum liquidity thresholds
The agreement also places limits on additional borrowing, asset sales, affiliate transactions, and distributions. Any missed payments, covenant breaches, or bankruptcy triggers could bring the facility to an immediate close, with all outstanding amounts due.
Wells Fargo and other lenders involved in the deal have existing relationships with the company, and may continue providing banking or advisory services going forward.
With this agreement in place, National Healthcare Properties secures more than just capital—it gains a structure that supports growth, adapts to market conditions, and helps the company move quickly when opportunities come up.
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