Health Care REIT, Inc.
) announced the closure of its public offering of common stock.
This real estate investment trust (REIT) priced the equity
offering of 23 million common shares at $73.50 per share,
including 3 million shares sold to underwriters to cover the
Health Care REIT generated gross proceeds of approximately
$1.7 billion from the offering. The company, in particular, plans
to utilize this sum to pay off its outstanding debts and advances
under the unsecured lines of credit. It also intends to employ it
for other corporate purposes such as investing in healthcare real
estate and seniors housing assets.
A consortium of banking giants - including Wells Fargo
Wells Fargo & Company
), Deutsche Bank Securities, UBS Investment Bank of
), Barclays, RBC Capital Markets,
) and J.P. Morgan - acted as joint book-running managers for the
Though this public offering will result in share dilution for
Health Care REIT, the payment of debt is encouraging as it would
reduce interest expenses. Moreover, strategic investments will
help the company to enhance its portfolio quality, which in turn
will be accretive to its earnings going forward.
Earlier this month, Health Care REIT reported first-quarter
2013 normalized FFO of 91 cents per share, a cent ahead of the
Zacks Consensus Estimate and up 4 cents year over year. The
increase in year-over-year FFO per share was primarily
attributable to better-than-expected revenue growth. As of Mar
31, 2013, Health Care REIT had cash and cash equivalents of
$269.8 million, down from $469.2 million in the prior-year
Health Care REIT currently holds a Zacks Rank #3 (Hold).
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