Healthcare Realty Trust Inc 8-K

What Happened
Healthcare Realty Trust Incorporated and its operating partnership entered into a Term Loan Agreement on May 15, 2026, establishing a $400.0 million senior unsecured delayed-draw term loan facility. The facility is available at closing and in up to three additional draws through the first anniversary of the closing; an accordion feature can increase capacity by up to $100.0 million subject to lender commitments. As of the May 15, 2026 closing date, no borrowings were outstanding under the facility.

Key Details

• Facility size: $400.0 million delayed-draw term loan; accordion to add up to $100.0 million.
• Availability and maturity: Available on May 15, 2026 and in additional draws through May 15, 2027; scheduled maturity May 15, 2029.
• Interest: Borrowings accrue at (a) base rate + margin, or (b) Term SOFR/Daily Simple SOFR + margin; rate floors apply (base rate floor 1.00%, SOFR floors 0.00%). Initial margins based on current ratings: 0.00% for base rate loans and 0.90% for Term SOFR/Daily Simple SOFR loans.
• Fees and payments: 0.20% per annum commitment fee on unfunded delayed-draw commitments beginning on the 91st day after closing. No required amortization or mandatory prepayments; voluntary prepayment allowed without penalty.
• Covenants and defaults: Agreement contains customary covenants (limits on additional debt, mergers, related-party transactions and several financial ratio tests) and customary events of default (nonpayment, covenant breaches, bankruptcy, change of control).

Why It Matters
This credit facility gives Healthcare Realty flexible liquidity capacity—up to $400M immediately available and potentially $500M with the accordion—without immediate borrowings at close. The terms (unsecured, delayed-draw structure, limited fees before draws, and no amortization) provide financial flexibility while imposing customary leverage and coverage covenants that investors should monitor. Key items to watch are whether and when the company draws funds, the impact on leverage ratios, and any change to credit ratings that could affect borrowing margins.