NEWPORT BEACH, CA-Turning away from its usual method of raising cash, locally based Health Care Property Investors Inc. has completed a secured debt transaction valued at $83 million for a portfolio of 12 medical office buildings and physician clinics.
Some of the proceeds are being used to reduce the company's revolving lines of credit. But most will be used to redeem the REIT's remaining $72 million in convertible subordinated notes due Nov. 8, says Kenneth B. Roath, the company's chairman and CEO.
Though the company usually taps the public markets for unsecured debt, “the very high rates currently available from that market prompted us to investigate secured financing options for a more effective cost of funds,” Roath said in a statement.
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