New Issue: Welltower prices $1.2 billion of senior notes in two tranches

By Cristal Cody

Tupelo, Miss., Aug. 8 – Welltower Inc. priced $1.2 billion of senior notes (Baa1/BBB+/BBB+) in reopened and new issue tranches on Thursday, according to a market source and an FWP filing with the Securities and Exchange Commission.

Welltower brought a $450 million add-on to its 3.625% senior notes due March 15, 2024 at a spread of Treasuries plus 95 basis points. The notes priced at 104.774 to yield 2.494%.

Initial price talk was in the Treasuries plus 115 bps area.

The company originally sold $500 million of the notes on Feb. 13 at 99.657 to yield 3.699% and a spread of Treasuries plus 117 bps. The total outstanding is $950 million.

Welltower sold $750 million of new 3.1% notes due Jan. 15, 2030 at a spread of 140 bps over Treasuries, or 99.816 to yield 3.121%.

The notes priced tighter than initial talk in the Treasuries plus 160 bps area.

Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, KeyBanc Capital Markets LLC, Barclays, BofA Securities, Inc., Credit Agricole Securities (USA) Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, MUFG, RBC Capital Markets, LLC, UBS Securities LLC and Wells Fargo Securities, LLC were 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 credit facility and commercial paper program and for general corporate purposes.

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

Issuer:	Welltower Inc.
Amount:	$1.2 billion
Description:	Senior notes
Bookrunners:	Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, KeyBanc Capital Markets LLC, Barclays, BofA Securities, Inc., Credit Agricole Securities (USA) Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, MUFG, RBC Capital Markets, LLC, UBS Securities LLC and Wells Fargo Securities, LLC
Senior co-managers:	BB&T Capital Markets, BBVA Securities Inc., BMO Capital Markets Corp., Fifth Third Securities, Inc., Jefferies LLC, Mizuho Securities USA LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., Stifel, Nicolaus & Co., Inc. and TD Securities (USA) LLC
Co-managers:	BOK Financial Securities, Inc., BNY Mellon Capital Markets, LLC, Comerica Securities, Inc., Loop Capital Markets LLC, Raymond James & Associates, Inc. and Huntington Investment Co.
Trade date:	Aug. 8
Settlement date:	Aug. 19
Ratings:	Moody’s: Baa1
	S&P: BBB+
	Fitch: BBB+
Distribution:	SEC registered
Five-year notes
Amount:	$450 million reopening
Maturity:	March 15, 2024
Coupon:	3.625%
Price:	104.774
Yield:	2.494%
Spread:	Treasuries plus 95 bps
Call features:	Make-whole call at Treasuries plus 20 bps; par call one month before maturity
Total outstanding:	$950 million, including $500 million of notes priced Feb. 13 at 99.657 to yield 3.699% and a spread of Treasuries plus 117 bps
Price guidance:	Treasuries plus 115 bps area
10-year notes
Amount:	$750 million
Maturity:	Jan. 15, 2030
Coupon:	3.1%
Price:	99.816
Yield:	3.121%
Spread:	Treasuries plus 140 bps
Call features:	Make-whole call at Treasuries plus 25 bps; par call three months before maturity
Price guidance:	Treasuries plus 160 bps area

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