Diversified Healthcare Trust prices $375 million senior secured notes

Diversified Healthcare Trust (NASDAQ: DHC) priced $375 million of 7.25% senior secured notes due October 2030. The company expects the offering to close on September 26, 2025, subject to customary closing conditions.

The notes will be guaranteed by subsidiaries that own 36 real properties in the United States on a senior secured basis, and by other subsidiaries on an unsecured basis. The guarantees will be secured by first-priority liens on 100% of the equity interests in the subsidiaries that own the 36 properties.

DHC plans to use net proceeds to partially redeem approximately $307 million of its existing zero coupon senior secured notes due 2026 at 100% of principal amount. The company expects to redeem the remaining 2026 notes during the fourth quarter of 2025 using proceeds from asset sales, cash on hand and its existing revolving credit facility.

The new notes are being offered only to qualified institutional buyers under Rule 144A and to non-U.S. investors under Regulation S. The securities have not been registered under the Securities Act of 1933.

DHC is a real estate investment trust that owns healthcare properties across the United States. As of June 30, 2025, the company's portfolio included 341 properties in 34 states and Washington, D.C., valued at approximately $6.8 billion. The portfolio comprises more than 26,000 senior living units and approximately 7.4 million square feet of medical office and life science properties occupied by about 450 tenants.

The company is managed by The RMR Group (NASDAQ: RMR), which has approximately $40 billion in assets under management as of June 30, 2025.

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