Business Context and Reporting Period
This Form 8-K is filed by Grubb & Ellis Healthcare REIT, Inc. (referred to in the text as Healthcare Realty Trust Inc in metadata) for the reporting period ending January 28, 2008. The filing discloses the execution of a material definitive agreement and the creation of a direct financial obligation related to an interest rate swap.
Key Financial Metrics and Obligations
The filing details a specific financing arrangement rather than general corporate financial performance metrics such as revenue or cash flow.
- Underlying Loan: Secured by real property in Chesterfield, Missouri; originally variable rate (LIBOR + 1.65%).
- Fixed Interest Rate: 5.59% per annum.
- Swap Term: December 24, 2007, through December 30, 2010.
- Payment Structure: Monthly interest-only payments commencing January 15, 2008.
- Counterparty: National City Bank.
The filing text does not provide a clear value for total debt, liquidity, revenue, profit, or margins.
Material Changes
The primary material change is the conversion of a variable interest rate loan to a fixed rate of 5.59% via an interest rate swap confirmation agreement executed on December 27, 2007, and an ISDA Master Agreement executed on January 28, 2008. This alters the company's exposure to interest rate fluctuations for the specified loan.
Outlook, Risks, and Management Commentary
Management commentary is limited to the disclosure of the agreement terms. The filing notes that the material terms of the ISDA Master Agreement are qualified in their entirety by the agreement attached as Exhibit 10.1. No specific forward-looking guidance, risk factors, or contingencies beyond the terms of the swap are detailed in the text provided.
Investor Verification Checklist
- Verify the total principal amount of the loan secured by the Chesterfield property, which is not stated in this summary text.
- Review Exhibit 10.1 (ISDA Master Agreement) for specific termination clauses and credit support requirements.
- Confirm the impact of the 5.59% fixed rate on the company's overall weighted average cost of debt.
- Assess the creditworthiness of National City Bank as the swap counterparty.