CareTrust Allows Requests for $1 Billion in Additional Financing Under New Credit Agreement
Key Facts
CTR Partnership entered into its fourth amended and restated credit and guaranty agreement on October 29, 2026, with CareTrust REIT as guarantor and KeyBank as administrative agent. The agreement allows the partnership to request additional commitments or new loan tranches totaling up to $1 billion. The additional financing remains subject to lender approval and compliance with financial covenants. The filing said the company currently has no commitments for this additional financing. CareTrust said it expects to use borrowings to refinance existing debt, fund investments and for general corporate purposes.
The agreement includes a revolving facility maturing on February 9, 2031, with two options to extend its term by six months each. The new term loan matures on February 9, 2032, while the existing term loan matures on May 30, 2030. The agreement therefore sets different maturities for the new and existing facilities, with specified extension options for the revolving facility. The previous agreement set the revolving facility’s maturity at February 9, 2029, with two options to extend by six months each. The term loan matured on May 30, 2030.
The terms include a $300 million sublimit that allows borrowing in euros, British pounds and Canadian dollars. The letters of credit and swingline sublimits are each capped at 10% of available revolving commitments. Dollar-denominated revolving facility loans carry margins of 0.00% to 0.35% per year over the base rate, or 0.675% to 1.35% over SOFR. The margins vary according to the company’s debt rating and certain financial ratios. As of June 30, 2026, outstanding loans totaled $500 million under the term loan and $310 million under the revolving facility.
The agreement comes as CareTrust expands its investments in healthcare-related real estate, senior housing and skilled nursing, sectors in which it operates through CTR Partnership. As of June 30, 2026, the company owned 426 facilities with 39,667 beds and operating units across 33 U.S. states and the United Kingdom. In an update issued on October 2, it announced an agreement to acquire 45 additional care homes in the United Kingdom for about £1.1 billion. The first closing, completed on October 1, covered 24 homes for about £576 million. The company said its investments in the third quarter and thereafter totaled about $1.6 billion, while investments since the start of 2026 reached a record $2.7 billion.
CareTrust REIT shares, traded under the ticker CTRE, closed at $36.26 on October 29, compared with $35.45 in the previous session. On August 6, the company raised its 2026 fiscal-year net income forecast to a range of $1.53–$1.56 per share. It also forecast Normalized FFO of $2.03 to $2.06 per share at the time. The agreement allows the partnership to request up to $1 billion in additional financing, subject to lender approval and compliance with financial covenants. The filing identified the expected uses of borrowings as refinancing existing debt, funding investments and general corporate purposes.