Health Care REIT to price $300 million 20-year convertibles at 4.375%-4.875%, up 20%-25%

By Kenneth Lim

Boston, Nov. 13 - Health Care REIT Inc. plans to price Tuesday after the market closes $300 million of 20-year convertible senior notes talked at a coupon of 4.375% to 4.875% and an initial conversion premium of 20% to 25%.

The convertibles will be offered at par.

There is an over-allotment option for a further $45 million.

UBS Investment Bank and Deutsche Bank are the bookrunners of the registered off-the-shelf offering.

The convertibles will be non-callable for the first five years, with puts in years five, 10 and 15.

There will be dividend and takeover protection.

There is a net-share settlement feature.

Health Care REIT, a Toledo, Ohio-based real estate investment trust that focuses on health care and senior housing facilities in the United States, said the proceeds of the deal will be used to invest in more health care and senior housing properties and to repay its unsecured debt.

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