Health Care REIT, Inc. (NYSE:HCN) recently announced the pricing of its underwritten public offering of 11 million shares of common stock at $50.00 per share, increased from a 10 million share offering in response to investor demand.
Additionally, the REIT has granted the underwriters an option to purchase up to an additional 1.65 million shares during the next 30 days to cover over-allotments, if any. Health Care REIT estimates the gross proceeds of this offering will be approximately $550 million, or approximately $632.5 million depending on whether or not the underwriters’ over-allotment option is exercised in full.
The company plans to use net proceeds from this offering for “general corporate purposes,” including investing in health care and seniors housing properties, and repaying borrowings under the company’s unsecured line of credit, and other outstanding indebtedness.
BofA Merrill Lynch, Morgan Stanley and Barclays Capital acted as joint book-running managers for the offering, while Deutsche Bank Securities, J.P. Morgan, UBS Investment Bank and Wells Fargo Securities acted as co-lead managers.
The shares of common stock are being offered pursuant to an effective shelf registration statement the REIT previously filed with the U.S. Securities and Exchange Commission.
Written by Alyssa Gerace