By Andrea Heisinger
New York, Nov. 27 - Health Care REIT, Inc. on Tuesday tapped the market for $1.2 billion of notes (Baa2/BBB-/BBB) in three tranches, a source close to the trade said.
A $450 million tranche of 2.25% five-year notes priced at a spread of Treasuries plus 170 basis points.
The second part was $500 million of 3.75% 10-year notes sold at 215 bps over Treasuries.
There was also $250 million of 5.125% 30-year bonds priced at a spread of Treasuries plus 240 bps.
Full terms of the trade were not available at press time.
Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and UBS Securities LLC were the active bookrunners. Passive bookrunners were Citigroup Global Markets Inc. and Credit Agricole Securities USA.
Proceeds will be used to repay about $1.1 billion of secured debt of Sunrise Senior Living Inc. to be assumed in connection with a merger. Proceeds will be used for general corporate purposes if the merger is not completed.
Health Care REIT was last in the market with a $600 million sale of seven-year notes on March 27, 2012.
The real estate investment trust for senior and health care real estate is based in Toledo, Ohio.
| Issuer: | Health Care REIT, Inc.
|
| Issue: | Notes
|
| Amount: | $1.2 billion
|
| Bookrunners: | Bank of America Merrill Lynch, Deutsche Bank Securities Inc., UBS Securities LLC (active), Citigroup Global Markets Inc., Credit Agricole Securities USA
|
| Trade date: | Nov. 27
|
| Settlement date: | Dec. 6
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB-
|
| Fitch: BBB
|
|
|
| Five-year notes
|
| Amount: | $450 million
|
| Maturity: | March 15, 2018
|
| Coupon: | 2.25%
|
| Spread: | Treasuries plus 170 bps
|
| Call:
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | March 15, 2023
|
| Coupon: | 3.75%
|
| Spread: | Treasuries plus 215 bps
|
|
|
| 30-year bonds
|
| Amount: | $250 million
|
| Maturity: | March 15, 2043
|
| Coupon: | 5.125%
|
| Spread: | Treasuries plus 240 bps
|
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