EPR Announces New Amended and Restated $ 1.0 Billion Revolving Credit Facility and Provides Business Update | Business

KANSAS CITY, Missouri – (BUSINESS WIRE) – October 6, 2021–

EPR Properties (NYSE: EPR) today announced the closing of a new amended and restated $ 1.0 billion unsecured revolving credit facility. In addition, the Company is providing key business updates for the third quarter ended September 30, 2021.

New amended and updated revolving credit facility

On October 6, 2021, the Company entered into a third amended, restated and consolidated credit agreement governing a new amended and restated senior unsecured revolving credit facility. The new facility, which will mature on October 6, 2025, replaced the existing $ 1.0 billion senior unsecured revolving credit facility and the $ 400.0 million senior unsecured term loan facility. of dollars. The new facility provides for an initial maximum principal amount available for debt of $ 1.0 billion with an “accordion” feature whereby the Company may increase the total maximum principal amount available by $ 1.0 billion. dollars, for a total of $ 2.0 billion, subject to the consent of the lender. The new facility has the same pricing conditions and financial commitments as the previous facility (with improved valuation of certain types of assets), as well as the usual commitments and events of default. The Company has two options to extend the maturity date of the new credit facility by an additional six months each (for a total of 12 months), subject to paying additional fees and the absence of any default.

The Company expects to use the borrowings under the New Revolving Credit Facility for general business purposes, including the acquisition of experiential properties in accordance with the Company’s current strategy. In September 2021, the Company repaid its $ 400.0 million senior unsecured term loan facility with cash on hand. As at September 30, 2021, the Company had approximately $ 145.0 million in cash and did not have any borrowings under its revolving credit facility.

The Company previously required certain of its subsidiaries to guarantee its obligations under its previous senior unsecured revolving credit facility, its existing unsecured term loan facility and its private placement and senior notes. unsecured due to a decline in credit scores resulting from the impact of the covid pandemic19. Following the Company’s high-quality rating on its long-term unsecured debt from two rating agencies in September 2021, the subsidiaries’ guarantors were released from their guarantees under these loan agreements. debt in accordance with the terms of these agreements.

Collections

Receipts from tenants and borrowers on an accrual and cash basis continued to exceed expectations and amounted to approximately $ 124.5 million or 90% of contractual cash revenue for the third quarter of 2021. Contractual cash income is an operational measure and represents the total cash payments to which the Company is entitled under existing contracts, excluding the impact of any allowance or temporary deferral, of the rent percentage ( rents collected on base amounts), non-cash income and income from taxable REIT subsidiaries (TRS).

During the third quarter of 2021, the Company also collected rent and deferred interest from tenants and borrowers on an accrual basis, which reduced receivables totaling $ 7.7 million. In addition, during the third quarter, the Company received deferred rent and interest from cash customers for a total amount of $ 3.6 million which was recorded as additional income, and received 5, $ 3 million on a previously reserved note receivable that was credited to loan loss reserves (note that loan loss reserve activity is excluded from funds from operations as adjusted or ” FFOAA ”(a non-GAAP financial measure)).

The collection activity for the third quarter of 2021 is summarized below:

Receipts for the quarter ended September 30, 2021

($ in millions)

Rising

% of contract
Cash receipts *

Collections related to Q3

$

124.5

90%

Deferred Repayments – Increase in Tenants (Reduction in Receivables)

7.7

5%

Deferred Payments in Income – Cash Tenants

3.6

3%

Ticket Refunds – Cash Tenants (Credit Loss Recovery)

5.3

4%

Total cash received **

$

141.1

102%

* Contractual cash income = $ 138.4

** Excludes rent percentage and TRS income

“We are pleased to report that the accelerated recovery of our clients’ businesses has resulted in inflows exceeding our expectations,” said Greg Silvers, President and CEO of EPR Properties. “This continued positive performance helped us secure a new favorable $ 1 billion credit facility and marks another significant step towards re-accelerating capital spending and growing our portfolio with various experiential assets.”

About EPR properties

EPR Properties is the leading diversified net-lease experiential real estate investment trust (REIT) specializing in certain experiential sustainable properties in the real estate industry. We focus on real estate sites that create value by facilitating out-of-home leisure and leisure experiences where consumers choose to spend their time and money at their discretion. We have nearly $ 6.5 billion in total investments in 44 states. We adhere to rigorous underwriting and investment criteria focused on leading industry, real estate and tenant cash flow standards. We believe our focused approach offers a competitive advantage and the potential for stable and attractive returns. More information is available at www.eprkc.com.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

The financial results presented in this press release reflect preliminary unaudited results, which are not final until the Company’s Quarterly Report on Form 10-Q is filed. Except for historical information, certain statements contained or incorporated by reference herein may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Act of 1933. Exchange Act of 1934, as amended (the “Exchange Act”), such as those relating to the Company’s expected pursuit of growth opportunities, capital resources and liquidity, expected cash flow and liquidity, the performance of our clients, receipts and expected results of operations and financial condition. The forward-looking statements presented here are based on the Company’s current expectations. Forward-looking statements involve many risks and uncertainties, and you should not rely on them as predictions of actual events. There can be no assurance that the events or circumstances reflected in any forward-looking statements will occur. You can identify forward-looking statements by using words such as “will”, “intend”, “continue”, “believe”, “could”, “expect”, “hope”, “anticipate”, ” forecast ”,“ pipeline ”,“ estimates ”,“ offers ”,“ plans ”,“ would ”or other similar expressions or other comparable terms or discussions about the strategy, plans or intentions contained or incorporated by reference herein. Forward-looking statements necessarily depend on assumptions, data or methods which may be incorrect or imprecise. These forward-looking statements represent our intentions, plans, expectations and beliefs and are subject to many assumptions, risks and uncertainties. Many of the factors that will determine these elements are beyond our ability to control or predict. For more details on these factors, see “Section 1A. Risk Factors ”in our most recent annual report on Form 10-K and, to the extent possible, in our quarterly reports on Form 10-Q.

For such statements, we claim safe harbor protection for the forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on our forward-looking statements, which speak only as of date hereof or the date of any document incorporated by reference herein. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Except as required by law, we do not undertake to publicly release revisions to our forward-looking statements to reflect events or circumstances subsequent to the date hereof.

See the source version on businesswire.com: https://www.businesswire.com/news/home/20211006005949/en/

CONTACT: EPR properties

Brian Moriarty, 888-EPR-FPI

www.eprkc.com

KEYWORD: UNITED STATES NORTH AMERICA MISSOURI

INDUSTRY KEYWORD: COMMERCIAL BUILDING AND REAL ESTATE CONSTRUCTION AND REAL ESTATE REIT

SOURCE: EPR properties

Copyright Business Wire 2021.

PUB: 06.10.2021 16:15 / DISC: 06.10.2021 16:17

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