HealthLease amendments would require it to redeem 5.75% convertibles

By Angela McDaniels

Tacoma, Wash., Oct. 2 – HealthLease Properties Real Estate Investment Trust is asking the holders of its 5.75% subordinated convertibles due 2018 to approve some amendments to the trust indenture governing the convertibles, according to a company news release.

Holders will vote at a meeting at 4 p.m. ET on Oct. 30. The record date is Oct. 3.

The meeting is being called at the request of Health Care REIT, Inc., which has agreed to acquire HealthLease Properties for C$14.20 per share.

The amendments, if approved by two-thirds of the votes cast by debentureholders, will require HealthLease to redeem the convertibles for cash at 109.5% of par plus accrued interest within 30 days of the closing date of the acquisition.

According to Health Care REIT, the amendments have support from significant institutional investors.

RBC Capital Markets is the solicitation agent. Georgeson Shareholder Communications is the information agent.

HealthLease Properties and Health Care REIT are REITs based in Toronto and Toledo, Ohio, respectively, that invest in seniors housing and health-care real estate.

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