Health Care REIT to price $350 million convertible senior notes, talked at 4.75%, up 23.76%

By Evan Weinberger

New York, July 16 - Health Care REIT, Inc. plans to price $350 million in convertible senior notes due July 15, 2027 with a coupon talked at 4.75% and an initial conversion premium talked at 23.76%.

The bonds will price at par, with the reoffer price talked at 98.25.

The convertibles are expected to price Tuesday before the market open.

UBS Investment Bank and Banc of America Securities are joint bookrunners of the registered transaction, with UBS serving as the stabilization agent.

There is a $52.5 million over-allotment option, representing 15% of the offering.

The bonds are callable beginning July 15, 2012 at par plus accrued interest. There are put options on July 15 in each of 2012, 2017 and 2022.

There are dividend and takeover protections, as well as an anti-dilution adjustment built in.

Health Care REIT is a Toledo, Ohio-based is a self-administered, equity real estate investment trust that specializes in senior housing and hospitals. The trust intends to use the proceeds to invest in more health care and senior housing properties, and to repay debt under the company's unsecured line of credit arrangements.

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