Health Care REIT Completes $1 Billion in Common Stock Offering

Health Care REIT, Inc. (NYSE:HCN) announced Monday that it has completed a $1 billion common stock offering—the largest overnight common stock offering in the country this year based on total gross proceeds, the company noted. 

Its public offering featured 16,100,000 shares at a price of $62.35 per share for total gross proceeds of about $1 billion, which includes 2,100,000 shares sold pursuant to the underwriters’ exercise in full of their purchase option for additional shares, the Toledo, Ohio-based REIT said in a news release.

Proceeds from the offering will be used for general operations including expansion of the company’s health care and senior housing property portfolios, Heath Care REIT stated.


Proceeds will also be used to repay advances under its primary unsecured credit facility.

BofA Merrill Lynch, Goldman, Sachs & Co., J.P. Morgan, Morgan Stanley, KeyBanc Capital Markets, RBC Capital Markets, and UBS Investment Bank acted as joint book-running managers for the offering.

As of March 31 the company’s portfolio consisted of 1,212 properties in 46 states, the United Kingdom, and Canada.


Recently, Health Care REIT was rumored to have been one of four major healthcare REITs eyeing healthcare real estate investment trust Griffin-American Healthcare REIT II, valued at around $3.7 billion. At the time, it was reported that American Realty Capital Healthcare Trust had emerged as a frontrunner in the supposed bidding war. Ventas, Inc. (NYSE: VTR) announced on Monday it’s acquiring American Realty Capital Healthcare REIT for $2.6 billion in stock and cash.

Following a landmark deal to acquire Sunrise Senior Living for a value of $4.3 billion last year, Health Care REIT has continued it senior housing acquisitions to include a recent $368 million in a California-based senior living joint venture as well as projected acquisitions to total $200 million in senior housing during the second quarter. 

Written by Cassandra Dowell

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