HCP Completes £220 Million Unsecured Term Loan Fixed at 1.79%
January 12 2015 - 4:05PM
Business Wire
HCP (NYSE:HCP) announced the closing of a £220 million unsecured
term loan. The term loan has a four-year term with a one-year
committed extension option and bears interest at GBP LIBOR plus
97.5 basis points, subject to adjustments based on HCP’s credit
ratings. HCP concurrently entered into a three-year interest rate
swap agreement that effectively fixes the rate of the term loan at
1.79%.
Proceeds from the term loan were used to repay £220 million
outstanding on HCP’s revolving credit facility that was initially
used to fund a portion of the Company’s £394.5 million UK debt
investment in November 2014. The UK debt investment represented the
financing for Formation Capital and Safanad’s acquisition of NHP,
which owns a portfolio of 273 nursing and residential care homes in
the UK primarily operated by HC-One. The UK debt investment is
projected to achieve a blended 8.2% yield-to-maturity.
“The pound sterling denominated term loan provides a natural
hedge with respect to our accretive debt investment with NHP and
HC-One,” said Tim Schoen, HCP’s Executive Vice President and Chief
Financial Officer. “We appreciate the strong support from our
banking syndicate as we continue to grow our UK investment
platform.”
Bank of America, N.A., serves as administrative agent with
Merrill Lynch, Pierce, Fenner & Smith Incorporated and J.P.
Morgan Securities LLC, as joint lead arrangers and joint
bookrunners, JPMorgan Chase Bank, N.A., as syndication agent,
Citibank, N.A., The Bank of New York Mellon, The Bank of
Tokyo-Mitsubishi UFJ, Ltd. and Wells Fargo Bank, National
Association, as co-documentation agents, and a syndicate of banks,
as lenders.
About HCP
HCP, Inc. is a fully integrated real estate investment trust
(REIT) that invests primarily in real estate serving the healthcare
industry in the United States. HCP's portfolio of assets is
diversified among five distinct sectors: senior housing,
post-acute/skilled nursing, life science, medical office and
hospitals. A publicly traded company since 1985, HCP: (i) was the
first healthcare REIT selected to the S&P 500 index; (ii) has
increased its dividend per share for 29 consecutive years; (iii) is
the only REIT included in the S&P 500 Dividend Aristocrats
index; and (iv) is a global leader in sustainability as a member of
the CDP, Dow Jones and FTSE4Good sustainability leadership indices,
as well as the GRESB Global Healthcare Sector Leader. For more
information regarding HCP, visit the Company's website at
www.hcpi.com.
Forward-Looking Statements
“Safe Harbor” Statement under the Private Securities Litigation
Reform Act of 1995: The statements made by HCP in this release or
relating hereto which are not historical facts are “forward-looking
statements” within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. These statements include, among other things,
statements regarding the effective interest rate of the term loan
and anticipated outcomes relating to the UK debt investment
described above and the Company’s UK investment platform. These
statements are made as of the date hereof, are not guarantees of
future performance and are subject to known and unknown risks,
uncertainties, assumptions and other factors — many of which are
out of HCP’s control and difficult to forecast — that could cause
actual results to differ materially from those set forth in or
implied by such forward-looking statements. These risks and
uncertainties include but are not limited to: HCP’s ability to
maintain its credit ratings and manage its indebtedness level,
changes in the terms of such indebtedness; HCP’s ability to achieve
the anticipated benefit of the UK debt investment described above
and to continue to grow its UK investment platform; and other risks
and uncertainties described from time to time in HCP’s Securities
and Exchange Commission filings, including its 2013 Annual Report
on Form 10-K. HCP assumes no, and hereby disclaims any, obligation
to update any of the foregoing or any other forward-looking
statements as a result of new information or new or future
developments, except as otherwise required by law.
HCP, Inc.Timothy M. SchoenExecutive Vice President and Chief
Financial Officer(949) 407-0400
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