LONG BEACH, CA-HCP, a healthcare properties REIT, has completed a $500 million offering of 14.95 million shares at a price of $33.50. The company plans to use proceeds to repay a portion of its debt.
The closing of the offering is the latest in a recent series of financial news announcements from HCP, which raised $1.3 billion through asset dispositions and financing transactions during the second quarter ended June 30. That followed an earlier announcement in June that the company had placed $259 million in secured financing on 21 of the health care property REIT’s senior housing assets, with Fannie Mae buying the debt.
The June refinancing followed HCP’s issuance in March and April of approximately $560 million in stock to respond to the anticipated demand for shares of its common stock by index funds in connection with the REIT’s addition to the S&P 500 Index. It used the proceeds to repay a portion of its debt under its revolving line of credit.
HCP also recently reached a settlement with Tenet Healthcare Corp. that is expected to produce income ranging from $41 million to $46 million, according to the REIT’s filings. The agreement with Tenet restructures HCP’s hospital portfolio leased to Tenet and settles various disputes between the two firms.
HCP owns properties in five categories within the health care segment: senior housing, medical office, life sciences, hospitals and skilled nursing facilities. Its portfolio totaled 706 properties as of June 30, with 267 in senior housing, 107 in life science, 256 in medical office, 25 hospitals and 51 skilled nursing facilities.
Article By: Bob Howard of Globe St.com