NHI Extends Current Credit Facility, Suspends Dividends for 2000.Business Editors and Health/Medical Writers
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National Health Investors, Inc. (NHI NHI
National Health Insurance and NHIPr - NYSE NYSE
See: New York Stock Exchange ) announced today that it received a 30 day extension to Nov. 10 on its Bank of Tokyo-Mitsubishi (BTMT) $102 million credit facility by making a payment of $7.5 million to reduce the principal.
During the 30-day extension, NHI intends to enter into an amendment to the credit facility. The agreement in principle between the parties provides for collateralizing the BTMT credit facility and an existing $25 million Bank of Montreal “BMO” redirects here. For the mathematics competition, see British Mathematical Olympiad.
Bank of Montreal/Banque de Montréal (TSX: BMO, NYSE: BMO) is Canada's fourth largest bank, and is classified as a Domestic Chartered Bank (Schedule I). term loan. The maturity date on the BTMT credit facility will be extended through Dec. 31, 2001 and the remaining balance on the Bank of Montreal loan will not be due until July 30, 2002. In addition, the banks are requiring substantial principal reductions over the next 14 months. NHI expects that the collateral for the credit facility and term loan will include a substantial portion of its first mortgage portfolio and the extended credit facility and term loan will bear an interest rate of LIBOR LIBOR
See: London Interbank Offered Rate
See London interbank offered rate (LIBOR). plus two percent.
NHI also has a $38 million subordinated convertible debenture Convertible Debenture
Any type of debenture that can be converted into some other security.
For example, a convertible bond can be converted into stock. due on Jan. 2, 2001. NHI officials said a third and fourth quarter dividend would not be paid until the $38 million subordinated convertible debentures are paid in full or refinanced. Any dividend reduction or elimination will be used to pay required debt. Over time, NHI believes this debt reduction will enhance its cash flow. NHI fully intends to preserve its status as a Real Estate Investment Trust.
Over the last several months, NHI and the banks have negotiated continuously regarding the credit renewal. While NHI believes an agreement in principal has been reached with the bank group regarding the terms and conditions of the new credit facility, no assurances can be given that a final agreement will be signed. If NHI is not able to renew the bank credit facility, it may be forced to seek one of the alternatives previously disclosed, including the sale of assets, merger, the sale of additional equity, or the filing for reorganization.
Statements in this press release that are not historical facts are forwarding-looking statements that involve a number of risks and uncertainties. In addition to the factors discussed above, among the other factors that could cause actual results to differ materially are the following: ability to reach agreement with certain creditors to extend maturity on terms NHI believes are reasonable prior to due dates; receipt of sufficient cash flow to repay debt as it becomes due; ability to continue to meet REIT REIT
See: Real Estate Investment Trust
See real estate investment trust (REIT). status; general industry distress, including the on-going effect of reimbursement Reimbursement
Payment made to someone for out-of-pocket expenses has incurred. cutbacks; and the description of the risk factors mentioned from time to time in NHI's SEC reports, including, but not limited to the report on the Form 10Q for the quarter ended June 30, 2000. NHI cautions investors that any forward-looking statements forward-looking statement
A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. made involve risks and uncertainties and are not guarantees of future performance. NHI has no duty to update information in this release. All forward-looking statements represent NHI's judgments as of the date of this release.