TOLEDO, OH—Health Care REIT, Inc. just collected about $1 billion from a public offering of 16,100,000 shares. The proceeds were most for any overnight-marketed SEC registered stock offering completed by any company thus far in 2014.
The Toledo, OH-based HCN sold about 16.1 million shares at $62.35 per share. The total includes about 2.1 million shares sold to underwriters exercising their option to purchase additional shares. The company plans to use the net proceeds to repay advances under its primary unsecured credit facility and to make additional investments in health care and seniors housing properties. Company officials were not available for comment by press time.
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 sale.
The successful offering will probably ensure the company will continue its robust investment activity. In the first quarter, for example, it completed $542 million of investments, including a $386 million investment in a joint venture, $57 million in acquisitions, $64 million in development funding, $29 million in loan advances and $6 million in capital improvements.
After releasing HCN’s first quarter report, chief executive officer Thomas J. DeRosa pointed to “the many growth opportunities that lie ahead.” HCN has developed “an enviable competitive position and a management team with a proven ability to cultivate long-term relationships with top seniors housing operators and health systems and identify high-quality investments.”
As of March 31, 2014, the company’s portfolio consisted of 1,212 properties in 46 states, the UK and Canada.