By Rebecca Melvin
New York, June 15 - Health Care REIT Inc. reopened its issue of 3% convertible senior notes due December 2029 to add $152.01 million to the issue, according to a news release.
Total issuance will now be $494.40 million, including $342.4 million of the notes priced March 15. The new notes will be issued under the same Cusip number as the older ones.
UBS Investment Bank and J.P. Morgan Securities Inc. were the joint bookrunners for the offering, which was made under a shelf registration statement on file with the Securities and Exchange Commission.
Proceeds are going to be used to buy back a portion of Health Care REIT's existing 4.75% convertible senior notes due 2026 and 2027.
The offering is expected to close June 18.
The notes will be non-callable until Dec. 1, 2014 and at any time to preserve the company's status as a REIT. Holders can put the notes on Dec. 1, 2014, Dec. 1, 2019 and Dec. 1, 2024.
Holders can convert their notes after June 30, if the closing sale price of the common stock exceeds 120% of the conversion price for 20 days in a 30-day period.
The notes will be convertible at an initial rate of 19.5064 shares per bond, which represents an initial conversion price about $51.27 per share.
Health Care REIT is a Toledo, Ohio-based self-administered equity real estate investment trust.
| Issuer: | Health Care REIT Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $152.01 million
|
| Maturity: | Dec. 1, 2029
|
| Bookrunners: | UBS Investment Bank, J.P. Morgan Securities Inc.
|
| Coupon: | 3%
|
| Price: | Par, $1,000
|
| Yield: | 3%
|
| Conversion premium: | 16%
|
| Conversion price: | $51.27
|
| Conversion ratio: | 19.5064
|
| Call protection: | Non-callable until Dec. 1, 2014
|
| Puts: | Puts on each of Dec. 1, 2014, Dec. 1, 2019 and Dec. 1, 2024
|
| Contingent conversion: | Yes, at 120%
|
| Net share settlement: | Yes
|
| Pricing date: | June 15
|
| Settlement date: | June 18
|
| Distribution: | Registered, off the shelf
|
| Stock symbol: | NYSE: HCN
|
| Stock reference price: | $44.22
|
| Market capitalization: | $5.5 billion
|
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