HCP Prices $800 million of 3.875% Senior Unsecured Notes Due 2024
August 07 2014 - 4:12PM
Business Wire
HCP, Inc. (NYSE:HCP) today priced an offering of $800 million of
3.875% senior unsecured notes due 2024. The offering size was
increased in response to investor demand. The price to investors
was 99.630% of the principal amount of the notes representing a
yield-to-maturity of 3.920%.
The net proceeds from the offering after expenses are
approximately $789.7 million and will be used together with cash on
hand to repay the amount outstanding under HCP’s revolving line of
credit, which was $300 million as of August 6, 2014. Such
borrowings were principally used to (a) fund a portion of the
recent acquisitions disclosed in HCP’s Quarterly Report for the
quarter ended June 30, 2014 and (b) repay an aggregate of $87
million of HCP’s medium-term notes, which matured on June 15, 2014.
HCP intends to use the remaining net proceeds raised in the
offering for general corporate purposes, which may include the
funding of the cash contribution to its previously announced
strategic joint venture with Brookdale Senior Living Inc. or other
future acquisitions, investments or repayment of indebtedness.
The offering is expected to close on August 14, 2014, subject to
customary closing conditions.
Merrill Lynch, Pierce, Fenner & Smith Incorporated, Barclays
Capital Inc., Morgan Stanley & Co. LLC, RBC Capital Markets,
LLC and UBS Securities LLC are acting as joint book-running
managers for the offering.
This offering of notes may be made only by means of a prospectus
supplement and a prospectus. A copy of the prospectus supplement
and the prospectus relating to the offering will be filed with the
Securities and Exchange Commission and, when available, can be
obtained from: (i) Merrill Lynch, Pierce, Fenner & Smith
Incorporated, 222 Broadway, 11th Floor, New York, NY 10038,
Attention: Prospectus Department, toll-free at 800-294-1322 or by
emailing dg.prospectus_requests@baml.com; (ii) Barclays Capital
Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue,
Edgewood, NY 11717, toll-free at 1-888-603-5847, or by emailing
barclaysprospectus@broadridge.com; (iii) Morgan Stanley & Co.
LLC, Attention: Prospectus Department, 180 Varick Street, 2nd
Floor, New York, NY 10014, toll-free at (866) 718-1649, or by
emailing prospectus@morganstanley.com; (iv) RBC Capital Markets,
LLC, Three World Financial Center, 200 Vesey Street, New York, NY
10281, Attention: Debt Capital Markets, toll-free at 866-375-6829
or by emailing usdebtcapitalmarkets@rbccm.com; or (v) UBS
Securities LLC, 299 Park Avenue, New York, New York 10171,
Attention Prospectus Department or toll-free at 1-877-827-6444,
ext. 561 3884.
This communication shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
these securities in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification thereof under the securities laws of any such state
or jurisdiction.
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
hospital. 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,
and the Global and North American healthcare sector leader for
GRESB.
Forward-looking Statements
The statements contained in this release which are not
historical facts are forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. These statements are subject to
risks and uncertainties that could cause actual results to differ
materially from those set forth in or implied by forward-looking
statements. These risks and uncertainties include general economic
conditions and the ability of HCP to complete the offering and
deploy the resulting proceeds as indicated above, including the
risk that the offering described above will not close on the
indicated timetable or at all, and that the proceeds may not be
able to be deployed as so indicated. Some of these risks, and other
risks, are described from time to time in HCP's Securities and
Exchange Commission filings.
Timothy M. SchoenExecutive Vice President and Chief Financial
Officer(949) 407-0400
HCP (NYSE:HCP)
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