KENNETT SQUARE, Pa., March 31 /PRNewswire/ -- ElderTrust (NYSE: ETT), a
health care REIT, today reported that it has reached agreement with Deutsche
Bank AG to further extend the term on its Bank Credit Facility. In January
1999, the Company reached an agreement to extend the Facility from its initial
January 29, 1999 due date to April 30, 1999. Under the new agreement, the
Facility is extended to January 1, 2000. A summary of significant terms is as
follows:
-- The Facility is extended to January 1, 2000.
-- An extension fee equal to 1% of the $100.5 million maximum borrowing
amount will be paid.
-- The interest rate applicable under the Facility remains unchanged
through May 31, 1999. Effective June 1, 1999, the rate increases to
2.75% over one month LIBOR.
The balance outstanding on the Facility at March 31, 1999 is $95.8
million.
"Currently the long term care operators are facing substantial challenges
posed by the implementation of the Prospective Payment System for Medicare
beneficiaries, and increased regulatory review of operations," said Edward B.
Romanov, Jr., ElderTrust's President and Chief Executive Officer. "The
resulting impact in the credit markets and, in particular the commercial
banking environment, has been a desire to limit or reduce exposure to the
skilled nursing industry and secondarily, to the healthcare REIT sector.
Hence, it was advantageous for us to procure this additional extension with
Deutsche Bank to allow us time to evaluate bank and other funding sources such
as the fixed-rate long-term mortgage market for our financing needs."
ElderTrust is a real estate investment trust that invests in real estate
properties used in the healthcare services industry, principally along the
East Coast of the United States. Since commencing operations in January 1998,
the Company has acquired interests in a portfolio of 31 buildings and has
loaned $49.6 million in construction and term financing on 9 additional
healthcare facilities.
Certain matters discussed within this press release may be deemed to be
forward looking statements within the meaning of the Private Securities Act of
1995. Although ElderTrust believes the expectations reflected in such forward
looking statements are reasonable assumptions, it can give no assurance that
its expectations will be attained. Factors that could cause actual results to
differ materially from ElderTrust's expectations include real estate
conditions, information determined in the course of due diligence review,
changes in the economic conditions and other risks detailed from time to time
in the Company's SEC reports and filings, including its registration
statement as well as quarterly reports on Form 10-Q and reports on Form 8-K.
The Company assumes no obligation to update or supplement forward looking
statements that become untrue because of subsequent events.
SOURCE ElderTrust
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Related links:
http: http://www.eldertrust.com
CONTACT:
D. Lee McCreary, Jr., Senior Vice President &
Chief Financial Officer of ElderTrust, 610-925-4200
NOTE TO EDITORS: For more information on ElderTrust via fax at no
charge, please dial 1-800-PRO-INFO and enter ticker symbol ETT,
or visit ElderTrust's Web site at http://www.eldertrust.com
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