Health Care REIT (HCN; Toledo, Ohio) said it has completed its public offering of 16.1 million shares sold for $62.35 a share, raising gross proceeds of about $1 billion. The sold shares include 2.1 million shares sold pursuant to the underwriters' exercise of a purchase option for additonal shares.
HCN said it plans to use the net proceeds to repay advances under its primary unsecured credit facility and for general corporate purposes, including investing in healthcare and seniors housing properties.
Bank of America 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.
In other financing activity, DaVita HealthCare Partners (Denver) said it is proposing, subject to market conditions, to enter into $5.5 billion of new senior secured credit facilities consisting of a $1 billion revolving credit facility, a $1 billion term loan A, and a $3.5 billion term loan B, and to issue up to $1.75 billion of unsecured debt.
DaVita said it plans to use the net proceeds and the new term loans to refinance existing credit facilities and the existing $775 million 6.375% senior notes due 2018, as well as for general corporate purposes.