CareTrust Adds $2.0 Billion Unsecured Revolving Facility Under New Credit Agreement
Key Facts
CareTrust REIT’s operating partnership, as borrower, and the company, as guarantor, signed a fourth amended and restated credit and guaranty agreement on October 29, 2026. The agreement establishes an unsecured revolving facility with an aggregate principal amount of $2.0 billion, including a $300 million multicurrency tranche. The tranche permits borrowing in euros, pounds sterling and Canadian dollars. The company said in its filing that borrowings under the facility will be used to refinance existing debt and fund investments and general corporate purposes. The agreement follows the company’s second-quarter results, which reported that its previous revolving facility was valued at $1.2 billion.
Second-quarter data show that the operating partnership had borrowed $500 million under the term loan and $310 million under the revolving facility as of June 30, 2026. The company said at the time that it was in compliance with applicable financial covenants. After the quarter ended, net borrowings under the revolving credit line increased by $285 million. Remaining availability under the facility was $605 million on August 6, 2026, according to the second-quarter results. This provides context for the expansion of the revolving facility in the new agreement compared with the previous $1.2 billion line.
Maturities for the new and existing financing run from 2030 to 2032. The existing term loan matures on May 30, 2030, while the revolving facility matures on February 9, 2031. The agreement provides for two options to extend the revolving facility’s maturity, each for six months. The new term loan matures on February 9, 2032. These dates outline the facility maturities set out in the agreement, with different terms for the existing term loan, revolving facility and new term loan.
The agreement links borrowing costs to the company’s long-term unsecured debt ratings. The spread on dollar loans under the revolving facility over SOFR ranges from 0.675% to 1.35% a year. The spread on term loans over the same benchmark ranges from 0.75% to 1.55% a year. The annual fee on the revolving facility ranges from 0.125% to 0.30%. The applicable levels within these ranges vary according to the debt rating, under the terms of the agreement attached to the company’s filing.
The agreement allows the operating partnership to request an increase in revolving commitments or the creation of new term-loan tranches, up to a combined maximum of $1 billion. This additional financing remains subject to satisfaction of the customary conditions set out in the agreement. The company said it has no current commitments for the increase or additional loans. The filing therefore describes a conditional financing option, not an existing commitment by lenders to provide additional funding. The company said borrowings will be used to refinance existing debt and fund investments and general corporate purposes.
The facility update comes as the company expands its U.K. care-home portfolio. On October 2, it announced an agreement to acquire 45 care homes for about 1.1 billion pounds sterling. The first phase covered 24 homes valued at about 576 million pounds and was announced as closed on October 1. The company said that phase was partly funded by a draw on the revolving facility. The chief financial officer said the company had deliberately operated with leverage below its target, giving it capacity to fund the deal while preserving flexibility for growth drivers.
In an October guidance update, CareTrust raised its fiscal 2026 outlook for adjusted funds from operations to a range of $2.06–$2.09 per share. It also forecast adjusted funds available for distribution of $2.02 to $2.05 per share. The company said it will report third-quarter results after the U.S. market closes on November 5, 2026. Management is scheduled to hold a call to discuss the results on November 6 at 11:00 a.m. Eastern Time. The company’s shares, listed under the ticker CTRE, closed at $36.26 on October 29, 2026.