Published on 6/9/2020 in the Prospect News Investment Grade Daily.
New Issue: Healthpeak Properties prices $600 million 2.875% notes due 2031 at 215 bps spread
By Cristal Cody
Tupelo, Miss., June 9 – Healthpeak Properties, Inc. sold $600 million of 2.875% senior notes due Jan. 15, 2031 (Baa1/BBB+/BBB+) on Tuesday at 99.125 to yield 2.972%, or a spread of 215 basis points over Treasuries, according to a market source and an FWP filed with the Securities and Exchange Commission.
The notes were talked to price in the 250 bps over Treasuries area.
Wells Fargo Securities LLC, Barclays, BofA Securities Inc., Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC and Mizuho Securities USA LLC were the bookrunners.
The proceeds will be used to fund the redemption of all $300 million of the company’s 2022 notes with accrued interest and to fund the purchase price of a tender offer for its 2023 notes with interest. Remaining proceeds will be used for general corporate purposes, which may include the repayment of borrowings under its revolving credit facility and outstanding commercial paper.
Healthpeak is an Irvine, Calif.-based real estate investment trust that owns and develops health care real estate within the United States.
| Issuer: | Healthpeak Properties, Inc.
|
| Amount: | $600 million
|
| Description: | Senior notes
|
| Maturity: | Jan. 15, 2031
|
| Bookrunners: | Wells Fargo Securities LLC, Barclays, BofA Securities Inc., Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC and Mizuho Securities USA LLC
|
| Senior co-managers: | BNY Mellon Capital Markets, LLC, Credit Agricole Securities (USA) Inc., J.P. Morgan Securities LLC, PNC Capital Markets LLC, RBC Capital Markets, LLC, Regions Securities LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., SunTrust Robinson Humphrey, Inc., TD Securities (USA) LLC and U.S. Bancorp Investments, Inc.
|
| Co-managers: | Huntington Securities, Inc. and KeyBanc Capital Markets Inc.
|
| Coupon: | 2.875%
|
| Price: | 99.125
|
| Yield: | 2.972%
|
| Spread: | Treasuries plus 215 bps
|
| Call features: | Make-whole call before Oct. 15, 2030 at Treasuries plus 35 bps; thereafter at par
|
| Trade date: | June 9
|
| Settlement date: | June 23
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 250 bps area
|
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