HCP to repay $2 billion revolving line of credit with new notes issue

By Susanna Moon

Chicago, Jan. 13 – HCP Inc. plans to pay down its $2 billion revolving line of credit with proceeds from a new notes issue, according to a 424B5 filing with the Securities and Exchange Commission.

The revolving line of credit matures on March 31, 2018, with a one-year committed extension option.

Interest on the loan is Libor plus 92.5 basis points, based on the company’s debt ratings as of Dec. 31, with a facility fee of 15 bps.

The company plans to price $500 million of 10-year senior notes (Baa1/BBB+/BBB+) on Tuesday, as reported by Prospect News.

Proceeds also will be used to repay the company’s $200 million 6% senior notes due March 2015, to repay its $200 million 7.072% senior notes due June 2015 and for general corporate purposes, including future acquisitions, investments or repayment of other debt.

The real estate investment trust for the health care industry is based in Long Beach, Calif.

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