Published on 1/13/2015 in the Prospect News Investment Grade Daily.
New Issue: HCP prices upsized $600 million 3.4% 10-year notes at 160 bps over Treasuries
By Aleesia Forni
Virginia Beach, Jan. 13 – HCP Inc. priced an upsized $600 million issue of 3.4% 10-year senior notes (Baa1/BBB+/BBB+) on Tuesday at Treasuries plus 160 basis points, according to a market source and an FWP filed with the Securities and Exchange Commission.
The notes priced at 99.185 to yield 3.497%.
The issuer was originally expected to sell $500 million of notes.
Citigroup Global Markets Inc., Credit Agricole CIB, Credit Suisse Securities (USA) LLC and RBS Securities Inc. were the joint bookrunners.
Proceeds will be used to repay the U.S. dollar portion outstanding under the company’s $2 billion revolving line of credit, to repay $200 million 6% senior notes due March 2015, to repay $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.
| Issuer: | HCP Inc.
|
| Amount: | $600 million, upsized from $500 million
|
| Description: | Senior notes
|
| Maturity: | Feb. 1, 2025
|
| Bookrunners: | Citigroup Global Markets Inc., Credit Agricole CIB, Credit Suisse Securities (USA) LLC, RBS Securities Inc.
|
| Senior co-managers: | BB&T Capital Markets, BNY Mellon Capital Markets LLC, MUFG, PNC Capital Markets LLC, Regions Securities LLC, Scotia Capital (USA) Inc., SunTrust Robinson Humphrey Inc.
|
| Coupon: | 3.4%
|
| Price: | 99.185
|
| Yield: | 3.497%
|
| Spread: | Treasuries plus 160 bps
|
| Make-whole call: | Treasuries plus 25 bps prior to Nov. 1, 2024, then callable at par
|
| Trade date: | Jan. 13
|
| Settlement date: | Jan. 21
|
| Ratings: | Moody’s: Baa1
|
| Standard & Poor’s: BBB+
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
| Price talk: | 165 bps area, tightened from 175 bps area
|
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