LONG BEACH, CA-HCP Inc., a healthcare-focused REIT, has priced an offering of $350 million of 4.2% senior unsecured notes due in 2024. The offering has a yield-to-maturity of 4.257%. It is expected to close on February 21, 2014.
The REIT priced the offering in response to growing demand. The price is based on 99.537% of the principal note value. Goldman, Sachs & Co., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are joint acting book-running managers.
After paying for expenses, HCP expects to earn nearly $345 million from the offering. Earnings will go to repay $240 million remaining on HCP's bank line of credit. The REIT had used the credit line in part to repay $400 million of 2.7% senior notes, which were due February 1, 2014 and a 5.7% mortgage debt also due February 1, 2014 with an aggregate principal of $156 million. Any remaining funds will be used for general corporate purposes. HCP did not respond to a request for comment.
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Kelsi Maree Borland
