Vital Infrastructure replaces C$370m secured line with C$500m unsecured bank facility

Vital Infrastructure Property Trust has replaced its C$370m secured credit facility with a C$500m senior unsecured bank line, increasing corporate borrowing capacity while removing the direct security package attached to its previous facility.

The Toronto-listed healthcare infrastructure group announced the refinancing on 1 September. The new facility runs to August 2031 and was arranged by a three-bank syndicate, with RBC Capital Markets acting as administrative agent and sole lead arranger. RBC, Bank of Nova Scotia and National Bank of Canada are joint bookrunners.

The move increases the headline facility size by C$130m, or around 35%, compared with the C$370m secured line it replaces.

More significant structurally is the move from secured to unsecured borrowing. Vital reported an unencumbered asset pool of C$2.1bn for purposes of the new facility at closing. Building a sufficiently large pool of assets that are not pledged directly to individual lenders can give a borrower more flexibility to raise corporate-level unsecured debt and simplify future financing activity.

Vital’s portfolio includes healthcare infrastructure across North America, Brazil, Europe and Australia. At the end of June, it held interests in 104 income-producing properties covering 11.1m square feet.

The company said the enlarged facility is intended to strengthen liquidity, extend its debt maturity profile and provide capacity for acquisitions and capital allocation. It did not disclose current drawings, pricing or the detailed covenant package in today’s announcement.

That means the C$500m figure represents committed facility capacity rather than evidence that Vital has borrowed C$500m in cash.

The refinancing follows a broader effort to increase the company’s pool of unencumbered property. Vital reported C$1.5bn of unencumbered assets at the end of June before subsequent activity, compared with C$1.2bn at the end of 2025.

The latest facility shows the financing consequence of that balance-sheet work: a larger unsecured corporate line replacing secured bank funding and giving the group greater flexibility over assets that would otherwise remain pledged.