Health Care REIT, Inc. (
HCN
)
, a real estate investment trust (REIT), recently announced that it
has priced its underwritten public offering of 26 million shares at
$56.00 each to enhance its liquidity. In a bid to cover
over-allotments, the company will provide a 30-day option to the
underwriters for purchase of an additional 3.9 million shares.
Health Care REIT intends to utilize the gross proceeds of $1.5
billion generated from the transaction for a couple of outstanding
payments. These include advances under its unsecured lines of
credit, outstanding debts and for other general corporate purposes,
besides investment in health care and seniors housing properties.
BofA Merrill Lynch, the investment banking and wealth management
division of
Bank of America Corporation (
BAC
)
; J.P. Morgan - part of
J.P Morgan Chase & Co (
JPM
)
;
Morgan Stanley (
MS
)
- a global financial firm; Deutsche Bank Securities - part of
Deutsche Bank AG (
DB
);
Wells Fargo Securities - part of
Wells Fargo & Company (
WFC
)
; and Key Banc Capital Markets - part of
KeyCorp (
KEY)
acted as joint book-running managers for the offering.
At the end of the second quarter 2012, the company had
cash and cash equivalents of $204.9 million. Health Care REIT
usually has long-term triple-net leases in senior housing and
healthcare real estate properties that insulate it from market
volatility and provide a steady source of revenue despite a
challenging macroeconomic environment.
Health Care REIT invests across the full spectrum of senior housing
and health care real estate properties. Headquartered in Toledo,
Ohio, Health Care REIT also provides an extensive array of property
management and development services.
Health Care REIT currently retains a Zacks #3 Rank, which
translates into a short-term Hold rating. We also maintain our
long-term Neutral recommendation on the stock.
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