By Andrea Heisinger
New York, July 18 - HCP, Inc. priced an upsized $300 million of 3.15% 10-year senior notes on Wednesday to yield Treasuries plus 180 basis points, an informed source said.
The deal size was increased from $250 million, the source said. The notes were sold tighter than whispered guidance in the 225 bps area and at the low end of revised talk in the 185 bps area, plus or minus 5 bps.
The notes (Baa2/BBB/BBB+) were sold at 98.888 to yield 3.281%. There is a make-whole call at 30 bps over Treasuries until May 1, 2022, with a par call after that date.
Goldman Sachs & Co., J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the bookrunners.
Co-managers were Credit Agricole Securities (USA) Inc., KeyBanc Capital Markets Inc. and RBC Capital Markets LLC.
Proceeds will be used for general corporate purposes, including funding future acquisitions or investments.
HCP was last in the market with a $450 million offering of 3.75% seven-year notes priced at 250 bps over Treasuries on Jan. 18, 2012.
The real estate investment trust for the health care industry is based in Long Beach, Calif.
| Issuer: | HCP, Inc.
|
| Issue: | Senior notes
|
| Amount: | $250 million
|
| Maturity: | Aug. 1, 2022
|
| Bookrunners: | Goldman Sachs & Co., J.P. Morgan Securities LLC, Wells Fargo Securities LLC
|
| Co-managers: | Credit Agricole Securities (USA) Inc., KeyBanc Capital Markets Inc., RBC Capital Markets LLC
|
| Coupon: | 3.15%
|
| Price: | 98.888
|
| Yield: | 3.281%
|
| Spread: | Treasuries plus 180 bps
|
| Call: | Make-whole at Treasuries plus 30 bps until May 1, 2022, par call after
|
| Trade date: | July 18
|
| Settlement date: | July 23
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB+
|
| Price talk: | 225 bps area (whispered), 185 bps area, plus or minus 5 bps (revised)
|
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