TOLEDO, Ohio--(BUSINESS WIRE)--July 17, 2007--Health Care REIT, Inc. (NYSE:HCN) today announced the pricing of its offering of $400 million aggregate principal amount of 4.75% Convertible Senior Notes due 2027. The offering was increased by $50 million in aggregate principal amount of notes over the offering announced earlier today. Health Care REIT has granted the underwriters a 30-day option to purchase up to an additional $60 million aggregate principal amount of notes to cover over-allotments, if any.
The notes will be senior unsecured obligations and mature on July 15, 2027. The notes will pay interest semi-annually at a rate of 4.75% per year. The notes may be redeemed, in whole or in part, by Health Care REIT from time to time on or after July 15, 2012. Holders of the notes will have the right to require Health Care REIT to repurchase for cash all or a portion of their notes on each of July 15, 2012, July 15, 2017 and July 15, 2022 and upon the occurrence of certain designated events. The notes will be convertible, in certain circumstances, into cash and, if applicable, shares of Health Care REIT's common stock at an initial conversion rate of 20.0000 shares per $1,000 principal amount of notes, which represents an initial conversion price of $50.00 per share. In general, upon conversion, the holder of each note would receive, in respect of the conversion value of such note, cash up to the principal amount of such note and Health Care REIT common stock for the note's conversion value in excess of such principal amount.
Net proceeds from the offering are estimated to be approximately $389.5 million after deducting underwriting discounts and commissions and estimated offering expenses. Health Care REIT intends to use the net proceeds from the offering to invest in additional properties. Pending such use, Health Care REIT intends to use the net proceeds primarily to repay borrowings under Health Care REIT's unsecured lines of credit arrangements and other outstanding indebtedness.
UBS Investment Bank and Banc of America Securities LLC are acting as joint bookrunning managers for the offering.
The offering is made pursuant to Health Care REIT's shelf registration statement on file with the Securities and Exchange Commission. A copy of the prospectus supplement and related prospectus relating to the offering may be obtained by contacting UBS Investment Bank, Prospectus Department, 299 Park Avenue, New York, New York 10171, or Banc of America Securities LLC, 100 West 33rd Street, 3rd Floor, New York, New York 10001, Attention: Equity Capital Markets Operations.
This press release is not an offer to sell, nor a solicitation of an offer to buy securities, nor shall there be any sale of these securities in any state or jurisdiction in which the offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
Health Care REIT, Inc., with headquarters in Toledo, Ohio, is a self-administered, equity real estate investment trust that invests across the full spectrum of senior housing and health care real estate, including independent living/continuing care retirement communities, assisted living facilities, skilled nursing facilities, hospitals, long-term acute care hospitals and medical office buildings. Founded in 1970, the company was the first real estate investment trust to invest exclusively in health care facilities. Health Care REIT also offers a full array of property management and development services. As of June 30, 2007, the company's broadly diversified portfolio consisted of 617 properties in 38 states. More information is available on the Internet at www.hcreit.com.
This document may contain "forward-looking" statements as defined in the Private Securities Litigation Reform Act of 1995. When the company uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions, it is making forward-looking statements. Forward-looking statements reflect current plans and expectations and are based on information currently available. They are not guarantees of future performance and involve risks and uncertainties, including those discussed in the prospectus supplement and related prospectus and in the company's other reports filed from time to time with the Securities and Exchange Commission. The company assumes no obligation to update or revise any forward-looking statements or to update the reasons why actual results could differ from those projected in any forward-looking statements.
CONTACT: Health Care REIT, Inc.
Mike Crabtree, 419-247-2800
Scott Estes, 419-247-2800
SOURCE: Health Care REIT, Inc.