S&P rates HCP notes BBB

Standard & Poor's said it assigned a BBB rating to four tranches of senior unsecured notes with an aggregate principal amount of $2.4 billion issued by HCP Inc.

The notes were issued in the following tranches: $400 million of 2.7% senior unsecured notes due 2014; $500 million of 3.75% senior unsecured notes due 2016; $1.2 billion of 5.375% senior unsecured notes due 2021; and $300 million of 6.75% senior unsecured notes due 2041.

The proceeds will be used to partially fund the $6.1 billion acquisition of all of the real estate assets of HCR ManorCare Inc.

The new notes will rank pari passu with the company's existing senior unsecured debt and will be governed by traditional REIT covenants, the agency said.

The ratings reflect the company's diversified health care REIT's satisfactory business risk profile, S&P added.

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