Market Overview

HCP Prices $800M of 2.625% Senior Unsecured Notes Due 2020


HCP (NYSE: HCP) priced an offering of $800 million of 2.625% senior unsecured notes due February 2020. The offering size was increased in response to investor demand. The price to the investors was 99.729% of the principal amount of the notes for an effective yield of 2.667%.

The net proceeds of the offering will be approximately $791 million, which HCP intends to use to repay $600 million currently outstanding on its bank line of credit, which borrowings were used to fund a portion of the aggregate purchase price for the acquisition of 133 senior housing communities from a joint venture between Emeritus Corporation and Blackstone Real Estate Partners VI, an affiliate of Blackstone, as announced by the Company on October 31, 2012, and for general corporate purposes that may include repayment of $150 million of 5.625% senior unsecured notes due February 2013 and funding of future acquisitions or investments.

The offering is expected to close on November 19, 2012, subject to customary closing conditions.

Merrill Lynch, Pierce, Fenner & Smith Incorporated, Morgan Stanley & Co. LLC and UBS Securities LLC acted as joint book-running managers for the offering.

Posted-In: News Financing


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