Welltower offers notes in two parts, including more 3.625% notes

By Devika Patel

Knoxville, Tenn., Aug. 8 – Welltower Inc. intends to offer fixed-rate notes in two tranches, including an add-on to its 3.625% senior notes (Baa1/BBB+/BBB+) due March 15, 2024, according to a 424B5 filing with the Securities and Exchange Commission.

The company sold $500 million of the 3.625% notes on Feb. 13 in an offering that settled on Feb. 15. The notes were priced at 99.657 to yield 3.699%, with a spread of Treasuries plus 117 basis points.

The tranche of new notes will be due in 2030.

The new notes have a make-whole call and then a par call. The 3.625% notes have a make-whole call at Treasuries plus 20 bps until one month prior to maturity and then a par call.

Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and KeyBanc Capital Markets LLC are the bookrunners.

Proceeds will be used to redeem all of the company's $450 million of 4.95% senior notes due 2021 and retire all or a portion of its $600 million of 5.25% senior notes due 2022, to repay debt under its unsecured credit facility and its unsecured commercial paper program and for general corporate purposes.

Welltower is a senior housing and health care real estate investment trust based in Toledo, Ohio.

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