By Aleesia Forni
Virginia Beach, Feb. 12 - HCP Inc. priced an upsized $350 million issue of 4.2% 10-year senior notes (Baa1/BBB+/BBB+) on Wednesday with a spread of 148 basis points over Treasuries, according to an informed source and an FWP filed with the Securities and Exchange Commission.
Pricing was at 99.537 to yield 4.257%.
The notes priced at the tight end of talk.
Goldman Sachs & Co., J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the joint bookrunners.
Proceeds will be used to repay about $240 million under the company's bank line of credit.
Borrowings under the line of credit were used to repay the company's $400 million 2.7% senior notes due Feb. 1, 2014 and $156 million 5.7% mortgage debt due Feb. 1, 2014.
Any additional proceeds will be used for general corporate purposes.
The real estate investment trust for the health care industry is based in Long Beach, Calif.
| Issuer: | HCP Inc.
|
| Amount: | $350 million, upsized from $300 million
|
| Description: | Senior notes
|
| Maturity: | March 1, 2024
|
| Bookrunners: | Goldman Sachs & Co., J.P. Morgan Securities LLC, Wells Fargo Securities LLC
|
| Senior co-managers: | BNY Mellon Capital Markets LLC, KeyBanc Capital Markets Inc., PNC Capital Markets LLC, Scotia Capital (USA) Inc., SunTrust Robinson Humphrey Inc., U.S. Bancorp Investments Inc.
|
| Coupon: | 4.2%
|
| Price: | 99.537%
|
| Yield: | 4.257%
|
| Spread: | Treasuries plus 148 bps
|
| Trade date: | Feb. 12
|
| Settlement date: | Feb. 21
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB+
|
| Fitch: BBB+
|
| Price talk: | Treasuries plus 150 bps area, tightened from Treasuries plus 162.5 bps area
|
| Make-whole call: | Treasuries plus 25 bps prior to Dec. 1, 2023, then callable at par
|
| Distribution: | SEC-registered
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
