HCP Wraps Up $500M Offering
- Aug 13, 2008
Long Beach-headquartered HCP Inc. has just concluded its offering of 14.95 million shares of common stock, which, at a price of $33.50 per share, yielded the healthcare REIT an aggregate $500 million. The company originally priced the offering of just 13 million shares on August 6 with hopes of taking in $435 million. HCP plans to use the proceeds from the offering to repay part of its outstanding debut under a bridge loan facility. In other recent financial transactions, in late May, the company placed $259 million of secured debt on 21 of its nearly 300 senior housing properties. The debt, featuring a seven-year term with a fixed interest rate of 5.83 percent, was provided by Grandbridge Real Estate Capital L.L.C. and purchased by Fannie Mae. HCP utilized net proceeds from that transaction to pay down the bridge loan and its revolving line of credit. It was in August 2007 that HCP closed on the $2.75 billion bridge loan–as well as a 1.5 billion revolving credit facility–to finance the $2.9 billion acquisition of Slough Estates USA Inc. The transaction augmented HCP’s portfolio by approximately 5.2 million square feet of life science/pharma space at 83 properties in the San Francisco Bay area and San Diego County, and an additional 3.8 million square feet of proposed projects in the same regions. As of the close of the second quarter, the bridge loan was down to $1.15 billion.HCP invests primarily in real estate associated with the healthcare industry in the U.S. The company’s portfolio, as of the close of the second quarter, encompassed 706 properties. The assets include 267 senior housing properties, 256 medical office properties, 51 skilled nursing facilities, 25 hospitals and 107 life science properties. Company shares debuted at $36.19 today.