Business Context and Reporting Period
Company: Community Healthcare Trust Inc.
Filing Type: Form 8-K (Current Report)
Report Date: April 3, 2017
Event Date: March 31, 2017
The filing reports the entry into material definitive agreements regarding interest rate swaps and the issuance of an investor update regarding recent investment activities.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, or overall debt levels. It specifically details the terms of new derivative instruments:
- Instrument Type: Two separate interest rate swap agreements.
- Counterparties: SunTrust Robinson Humphrey Inc. and Fifth Third Bank.
- Notional Amount: $30.0 million per swap (Total $60.0 million).
- Underlying Debt: 7-year and 5-year term loans under the Second Amended and Restated Credit Agreement.
- Fixed Rates: 4.535% for the 7-year term loan and 4.147% for the 5-year term loan (subject to leverage).
Material Changes
The Company has altered its interest rate exposure by fixing the rates on specific term loans via the new swap agreements. This action mitigates the risk of rising LIBOR rates on the specified $60.0 million of debt through the maturity dates of the respective loans.
Guidance, Outlook, and Other Events
- Investor Update: On April 3, 2017, the Company issued a press release updating recent investment activities.
- Investor Presentation: An April 2017 investor presentation was prepared for meetings with current and potential investors and is available on the Company's website.
- Full Disclosure: The summary of the swap agreements is qualified by reference to the full text, which will be filed as an exhibit to the Form 10-Q for the quarter ended March 31, 2017.
Key Facts for Investor Verification
- Verify the full text of the interest rate swap agreements in the upcoming Form 10-Q for the quarter ended March 31, 2017.
- Review the press release dated April 3, 2017 (Exhibit 99.1) for details on recent investment activities.
- Confirm the Company's current leverage ratio to ensure the fixed rates of 4.147% and 4.535% remain applicable.
- Assess the impact of these swaps on the Company's overall cost of debt and interest rate risk profile.