HCP to use senior note offering to repay revolving credit facility

By Tali David

Minneapolis, Jan. 18 - HCP, Inc. plans to use the proceeds of its senior note offering to repay borrowings under its revolving line of credit, with any remainder to be used for general corporate purposes, according to a 424B5 filing with the Securities and Exchange Commission.

The company's revolver matures on March 11, 2015, with a one-year committed extension option, but may be repaid anytime beforehand, and accrues interest at Libor plus a margin ranging from 132.5 basis points to 200 bps based on its senior unsecured long-term debt ratings.

At Sept. 30, HCP said it had $375 million outstanding under its revolver with a weighted-average effective interest rate of 2.21%.

HCP is a Long Beach, Calif., real estate investment trust primarily involved in health care properties.

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