Healthcare Trust Moves Share Repurchase Date Out One Month
March 28, 2019 | James Sprow | Blue Vault
On March 26, 2019, the board of directors of Healthcare Trust, Inc. approved an amendment to the Company’s existing share repurchase program (“SRP”) changing the date on which repurchases are to be made in respect of requests made during the period commencing March 13, 2018, up to and including December 31, 2018 to no later than April 30, 2019, rather than on or before March 31, 2019. This amendment will become effective on March 28, 2019.
All other terms of the SRP remain in effect, including that repurchases pursuant to the SRP are at the sole discretion of the Board.
The REIT repurchased 759,867 shares in 2018 for a total of $55.33 million. In a recent Proxy statement, the REIT stated that there were 91,986,536 common shares outstanding. The share repurchases in 2018 would represent approximately 0.83% of outstanding shares. Repurchases are limited under the SRP to 5.0% of the prior year’s outstanding shares, and it is limited to repurchase shares in a given fiscal semester up to the amount of proceeds received from its DRIP in that same fiscal semester.
The REIT is restricted from making share repurchases to the extent they would be aggregated with distributions to stockholders under the covenant in its New Credit Facility that restricts payments of distributions to stockholders. Although this covenant exempts payments for share repurchases up to $50.0 million during the term of the New Credit Facility from being aggregated in this way, the REIT must maintain cash and cash equivalents of at least $30.0 million and compliance with a leverage ratio after giving effect to those payments. As of December 31, 2018, the REIT had cash and cash equivalents of $77.3 million. As of December 31, 2018, the REIT’s total debt leverage ratio (total debt divided by total assets) was approximately 45.2% and it had total borrowings of $1.1 billion.
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