By Cristal Cody
Tupelo, Miss., Aug. 9 – Welltower Inc. sold $1.3 billion of senior notes (Baa1/BBB+/BBB+) in three tranches on Thursday, according to a market source.
The company priced $600 million of 3.95% five-year notes on top of guidance at a spread of Treasuries plus 115 basis points.
It also sold a $200 million add-on to its 4.25% notes due April 15, 2028 on the tight side of guidance at a spread of 145 bps over Treasuries.
The company originally sold $550 million of the 4.25% notes on April 3 at 99.959 to yield 4.255%, and a spread of 148 bps over Treasuries. The total outstanding is now $750 million.
In addition, Welltower priced $500 million of 4.95% 30-year notes on the tight side of guidance with a spread of 190 bps over Treasuries.
Barclays, Citigroup Global Markets Inc. and MUFG were the bookrunners.
Proceeds will be used to repay advances under the company’s term loan and under its primary unsecured credit facility and for general corporate purposes.
Welltower is a senior housing and health care real estate investment trust based in Toledo, Ohio.
| Issuer: | Welltower Inc.
|
| Amount: | $1.3 billion
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| Description: | Senior notes
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| Bookrunners: | Barclays, Citigroup Global Markets Inc. and MUFG
|
| Trade date: | Aug. 9
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| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
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| Fitch: BBB+
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| Distribution: | SEC registered
|
|
|
| Five-year notes
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| Amount: | $600 million
|
| Maturity: | Sept. 1, 2023
|
| Coupon: | 3.95%
|
| Spread: | Treasuries plus 115 bps
|
| Price guidance: | Treasuries plus 115 bps; initial price talk at Treasuries plus 135 bps area
|
|
|
| Ten-year notes
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| Amount: | $200 million
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| Maturity: | April 15, 2028
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| Coupon: | 4.25%
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| Spread: | Treasuries plus 145 bps
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| Call features: | Make-whole call at Treasuries plus 25 bps before Jan. 15, 2028; thereafter at par
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| Total outstanding: | $750 million, including $550 million of notes priced April 3 at 99.959 to yield 4.255% and a spread of 148 bps over Treasuries
|
| Price guidance: | Treasuries plus 150 bps, plus or minus 5 bps; initial price talk at Treasuries plus 155 bps area
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| Thirty-year notes
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| Amount: | $500 million
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| Maturity: | Sept. 1, 2048
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| Coupon: | 4.95%
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| Spread: | Treasuries plus 190 bps
|
| Price guidance: | Treasuries plus 195 bps, plus or minus 5 bps; initial price talk at Treasuries plus 205 bps area
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