Diversified Healthcare to sell $500 million five-year notes on Thursday

By Paul A. Harris

Portland, Ore., May 28 – Diversified Healthcare Trust plans to price a $500 million offering of five-year senior notes (confirmed Ba1/existing BB+) in a Thursday drive-by following a late-morning conference call with investors, according to a syndicate source.

Wells Fargo Securities LLC is the left bookrunner for the public offering. Citigroup Global Markets Inc., PNC Capital Markets LLC and RBC Capital Markets LLC are the joint bookrunners.

BofA Securities Inc., BMO Capital Markets Corp., Mizuho Securities USA Inc., Regions Securities LLC and SMBC Nikko Securities America Inc. are the joint lead managers.

Ramirez & Co., Morgan Stanley & Co. LLC, U.S. Bancorp Investments Inc. and UBS Securities LLC are the co-managers.

The notes become callable after two years at par plus 50% of the coupon.

The Newton, Mass.-based real estate investment trust, which is focused on health care properties, plans to use the proceeds for general corporate purposes, which may include repaying its 2020 term loan as well as repaying debt under its revolving credit facility.

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