Thank you for sharing!

Your article was successfully shared with the contacts you provided.

LONG BEACH, CA-HCP, a health care properties REIT that successfully raised additional funds last year by issuing new stock, has priced a new public offering of 18 million shares of common stock at $21.25 per share, aiming to raise $382.5 million. The REIT plans to use the proceeds of the offering to pay off debt and for general corporate purposes.

In addition to offering the 18 million shares, HCP has granted the underwriters of the offering an option to purchase up to 2.7 million shares within 30 days of the offering. UBS Investment Bank and Merrill Lynch & Co. are joint book-running managers for the offering.

According to its filings with the SEC, the health care properties REIT anticipates that the net proceeds of its offering will be approximately $366.7 million, or approximately $421.8 million if the underwriters fully exercise their option to purchase additional shares. It plans to use the net proceeds to repay all the outstanding balance under a bridge loan that carried a balance of $320 million as of May 1.

HCP’s new offering illustrates the confidence and success that health care-related enterprises and related types of public companies have had in raising capital despite the difficulty that commercial real estate firms in general have had in finding funds. Last summer, for example, HCP completed a $500 million offering of 14.95 million shares at a price of $33.50. Earlier in the year, the company issued approximately $560 million in stock to respond to the anticipated demand for shares of its common stock by index funds in connection with the REIT’s addition to the S&P 500 Index.

As of its latest quarterly report, HCP owned 692 properties, including senior housing, life science, medical office, hospital and skilled nursing facilities.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.