National Health Investors (NHI), a real estate investment trust specializing in healthcare properties, has successfully issued $350 million in senior notes. The debt offering, which carries an interest rate of 5.350% and is set to mature in 2033, was priced at 98.903% of its face value. The transaction is scheduled to be finalized on September 26.
The primary objective for the net proceeds is to pay down borrowings under NHI’s $700 million revolving credit facility. This strategic move is expected to generate substantial financial benefits for the company.
Significant Financial Benefits and Improved Leverage
A key outcome of this refinancing effort is a projected annual interest expense reduction of between $12 million and $15 million. Furthermore, the company’s leverage ratio is forecast to improve dramatically. The ratio of net debt to adjusted EBITDA, which stood at 6.8x in the second quarter of 2025, is anticipated to decline to approximately 5.2x by 2026. This improvement would position NHI within a much healthier leverage range for its industry.
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This financing activity provides NHI with enhanced operational flexibility in a volatile interest rate environment. By extending its debt maturity profile and reducing reliance on shorter-term credit lines, the REIT avoids the potential dilution of an equity issuance and secures more stable, long-term capital.
Momentum Following Strong Quarterly Results
The bond issuance comes on the heels of a robust second-quarter earnings report for 2025, in which NHI surpassed market expectations. The company reported earnings per share of $0.79, beating estimates of $0.75, while revenue reached $70.27 million against a forecast of $67.73 million. This outperformance prompted an upward revision of NHI’s full-year guidance.
With its next quarterly results anticipated on November 4, the successful bond placement equips National Health Investors with significant financial latitude. This newfound flexibility is expected to support strategic investments in its core markets of senior housing and healthcare real estate.
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