Grubb & Ellis Healthcare REIT II Expands Credit Facility With Bank of America to $45 Million
Date : 05/05/2011 @ 5:50PM
Source : PR Newswire
Stock : Grubb & Ellis (GBE)
Quote : 0.7 0.0 (0.00%) @ 7:06AM
Grubb & Ellis Healthcare REIT II Expands Credit Facility With Bank of America to $45 Million
Grubb & Ellis (NYSE:GBE)
Intraday Stock Chart
Today : Friday 6 May 2011
Grubb & Ellis Healthcare REIT II, Inc. today announced that it has modified its existing secured revolving credit facility with Bank of America, National Association. Under terms of the modification, the credit available under the facility expands to $45 million from $25 million. The credit facility may be utilized to fund property acquisitions and for other general corporate purposes.
"The continued support we're receiving from Bank of America speaks volumes about Grubb & Ellis Healthcare REIT II and the quality of the management team and product we provide to our investors," said Jeff Hanson, chairman and chief executive officer.
The credit facility matures on July 19, 2012, but may be extended at the option of Grubb & Ellis Healthcare REIT II for an additional year upon meeting certain conditions. The modified credit facility eliminates a previous all-in interest rate floor of 5 percent and bears interest at a rate equal to LIBOR plus 3.50 percent, down from 3.75 percent.
"Since beginning property acquisitions in March 2010, we have built one of the best performing portfolios among non-traded REITs," said Danny Prosky, president and chief operating officer. "Our expanded credit line with Bank of America will enable more rapid growth and further strengthen the REIT on behalf of our shareowners."
As of April 22, 2011, Grubb & Ellis Healthcare REIT II has sold approximately 23,120,666 shares of its common stock, excluding the shares issued under it distribution reinvestment plan, for approximately $230,681,000 through its initial public offering, which began at the end of the third quarter of 2009.
Grubb & Ellis Healthcare REIT II offers a monthly distribution of 6.5 percent per annum and has made 19 geographically diverse acquisitions comprised of 33 buildings valued at approximately $262 million, based on purchase price in the aggregate.
