Published on 3/16/2021 in the Prospect News Investment Grade Daily.
New Issue: Welltower sells $750 million of 2.8% notes due 2031 at 99.519
By Cristal Cody
Chicago, March 16 – Welltower Inc. priced $750 million of 2.8% notes due June 1, 2031 (Baa1/BBB+/BBB+) on Tuesday at 99.519 to yield 2.855%, according to an FWP filed with the Securities and Exchange Commission.
The notes priced with a spread of Treasuries plus 123 basis points based on the 1.125% Treasury note due Feb. 15, 2031.
Price talk on the deal was in the Treasuries plus 137.5 bps area.
The notes will have a make-whole call based on premium of Treasuries plus 20 bps and then a par call three months prior to the maturity date.
Barclays, J.P. Morgan Securities LLC and MUFG are active joint bookrunners for the notes. Additional bookrunners are BofA Securities, Inc., Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, KeyBanc Capital Markets Inc., Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, UBS Securities LLC and Wells Fargo Securities, LLC.
Proceeds will be used to redeem all or a portion of the company’s outstanding $339.12 million 3.75% senior notes due 2023 and all or a portion of the $334,624,000 outstanding 3.95% senior notes due 2023.
Any remaining proceeds will be used for general corporate purposes.
The Toledo, Ohio-based real estate investment trust invests in senior housing and health care real estate.
| Issuer: | Welltower Inc.
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| Issue: | Notes
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| Amount: | $750 million
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| Maturity: | June 1, 2031
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| Bookrunners: | Barclays, J.P. Morgan Securities LLC, MUFG, BofA Securities, Inc., Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, KeyBanc Capital Markets Inc., Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, UBS Securities LLC and Wells Fargo Securities, LLC
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| Co-managers: | BBVA Securities Inc., BMO Capital Markets Corp., Fifth Third Securities, Inc., Mizuho Securities USA LLC, PNC Capital Markets LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., Stifel, Nicolaus & Co., Inc., TD Securities (USA) LLC, Truist Securities, Inc., Huntington Securities, Inc., BNY Mellon Capital Markets, LLC, Comerica Securities, Inc., Loop Capital Markets LLC, Raymond James & Associates, Inc. and BOK Financial Securities, Inc.
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| Coupon: | 2.8%
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| Price: | 99.519
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| Yield: | 2.855%
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| Spread: | Treasuries plus 123 bps
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| Call features: | Make-whole at Treasuries plus 20 bps; par call three months before maturity
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| Trade date: | March 16
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| Settlement date: | March 25
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| Ratings: | Moody’s: Baa1
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| S&P: BBB+
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| Fitch: BBB+
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| Distribution: | SEC registered
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| Price talk: | Treasuries plus 137.5 bps area
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