Published on March 10, 2010 at 8:55 AM
Health Care REIT, Inc. (NYSE:HCN) today announced the pricing of
its offering of $342,394,000 aggregate principal amount of 3.00%
Convertible Senior Notes due 2029.
The notes will be senior unsecured obligations and mature on December 1,
2029. The notes will pay interest semi-annually at a rate of 3.00% per
year. The notes may be redeemed, in whole or in part, by Health Care
REIT from time to time on or after December 1, 2014 and at any time to
preserve Health Care REIT’s status as a REIT. Holders of the notes will
have the right to require Health Care REIT to repurchase for cash all or
a portion of their notes on each of December 1, 2014, December 1, 2019
and December 1, 2024 and upon the occurrence of certain designated
events. The notes will be convertible, in certain circumstances, into
cash and, if applicable, shares of Health Care REIT’s common stock at an
initial conversion rate of 19.5064 shares per $1,000 principal amount of
notes, which represents an initial conversion price of approximately
$51.27 per share. In general, upon conversion, the holder of each note
would receive, in respect of the conversion value of such note, cash up
to the principal amount of such note and Health Care REIT common stock
for the note’s conversion value in excess of such principal amount.
Health Care REIT intends to use the net proceeds from the offering to
repurchase a portion of its 4.75% Convertible Senior Notes due 2026 and
2027. The offering is expected to close on March 15, 2010, subject to
customary closing conditions.
UBS Investment Bank and J.P. Morgan are acting as joint book-running
managers for this offering.
Source Health Care REIT
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Tags: Investment