Healthcare Trust aims to issue notes in two parts, including add-on

By Devika Patel

Knoxville, Tenn., Sept. 5 – Healthcare Trust of America Holdings, LP intends to offer fixed-rate notes in two tranches, including an add-on to its 3.5% senior notes (Baa2/BBB) due Aug. 1, 2026, according to a 424B5 filing with the Securities and Exchange Commission.

The notes are guaranteed by Healthcare Trust of America, Inc.

The company sold $350 million of the 3.5% notes in a sale that priced on July 7, 2016 and settled July 12, 2016. The notes were priced at 99.721 to yield 3.533%, with a spread of Treasuries plus 215 basis points.

The new notes, due in 2030, have a make-whole call and then a par call. The 3.5% notes have a make-whole call at Treasuries plus 35 bps until May 1, 2026 and then a par call.

BofA Securities, Inc., J.P. Morgan Securities LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC are the bookrunners.

BMO Capital Markets Corp., Capital One Securities, Jefferies & Co., Morgan Stanley & Co. LLC and MUFG are the co-managers.

Proceeds will be used to redeem all $300 million of the company's 3.375% senior notes due 2021 and all $400 million of its 2.95% senior notes due 2022, to repay debt under its unsecured revolving credit and term loan facility and for general corporate purposes.

Healthcare Trust of America is a Scottsdale, Ariz.-based real estate investment trust focused on medical office buildings.

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