KENNETT SQUARE, Pa., Dec. 30 /PRNewswire/ -- ElderTrust (NYSE: ETT), an
equity healthcare REIT, today announced that it has reached agreement with its
lender, German American Capital Corp, to extend its Bank Credit Facility. The
agreement extends the Facility through June 30, 2001 on the terms summarized
below. German American Capital Corp. is an affiliate of Deutsche Bank Alex
Brown. Documents have been executed and are being held pending closing on
January 3, 2000.
In addition, the Company announced that it had completed its previously
announced share repurchase program and had repurchased 82,100 common shares,
or approximately 1% of its previously outstanding shares and units, at an
average purchase price of $6.08 per share, or $499,000 in the aggregate.
"The Bank Credit Facility extension is a significant achievement for the
Company and is the culmination of a great deal of hard work," said D. Lee
McCreary, Jr., President and Chief Executive Officer. Mr. McCreary added, "On
September 8 the balance of the Bank Credit Facility stood at $95 million.
From that day through November 24 we raised $68.5 million in new financing,
reduced the Facility balance to approximately $40 million and reached terms
with German American Capital Corp. to extend the remainder of the Bank Credit
Facility for eighteen months. What makes these achievements even more
gratifying is the fact that they were accomplished in the face of a steadily
deteriorating healthcare finance market. Our thanks go out to the
professionals at German American Capital Corp. and J.P. Morgan Mortgage
Capital, Inc. without whose help we could not have been successful."
Additional details on the agreement is as follows:
Bank Credit Facility Extension:
Interest rate:
Base rate 30-day LIBOR
Spread 275 basis points if loan is less
than 80% of borrowing base, 325
basis points if loan is 80% or more
of borrowing base.
Term: Expires June 30, 2001.
Fees: 100 basis points due upon
extension.
6.25 basis points per month on
outstanding balance.
Principal amortization: 22 basis points of monthly balance.
Other:
Maximum additional borrowing
capacity: $5.75 million
Dividend limitation: 95% of FFO, plus $3 million over
the loan term.
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 direct and indirect interests in 31 buildings and has
loaned $52 million in construction and term financing on nine 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
Litigation Reform 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, the Company's ability to refinance its
existing bank credit facility, changes in the economic conditions and other
risks detailed from time to time in the Company's SEC reports and filings.
The Company assumes no obligation to update or supplement forward-looking
statements that become untrue because of subsequent events.
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 .
SOURCE ElderTrust
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Related links:
http://www.eldertrust.com
CONTACT:
D. Lee McCreary, Jr., President and Chief
Executive Officer of ElderTrust, 610-925-4200
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