|[July 28, 2014]
Health Care REIT, Inc. Announces Closing of Expanded $3.23 Billion Unsecured Credit Facility
TOLEDO, Ohio --(Business Wire)--
Health Care REIT, Inc. (NYSE:HCN) announced today that it has
closed an approximate $3.23 billion unsecured credit facility consisting
of a $2.5 billion revolver, a $500 million term loan and a CAD 250
million ($232.9 million at exchange rates as of July 18, 2014) term
loan. The facility replaces the company's existing credit facilities of
approximately $2.98 billion.
The facility matures October 31, 2018, and can be extended for an
additional year at the company's option. Based on the company's current
credit ratings, the revolver bears interest at LIBOR plus 105 basis
points and has an annual facility fee of 20 basis points. The term loans
bear interest at LIBOR and CDOR for the USD and CAD loans, respectively,
plus 115 basis points. HCN has an option to upsize the facility by up to
an additional $1.0 billion through an accordion feature, allowing for a
total credit facility of up to $4.23 billion. The facility also allows
the company to borrow up to $500 million in alternate currencies.
"Along with our recent equity offering, this transaction demonstrates
the excellent relationships we have with our capital partners. We
enjoyed very strong demand from 28 financial institutions with
approximately $4.5 billion in aggregate commitments," said Tom DeRosa,
HCN's Chief Executive Officer. "The pricing of this facility provides us
with a morethan 15 basis point overall savings versus our previous
facility. The expanded capacity and new 5-year term further enhances our
strong financial flexibility and highlights HCN's unparalleled access to
The company intends to use proceeds from the credit facility to fund
announced investment activity and for general corporate purposes
including investing in health care and seniors housing properties.
The credit facility was arranged by Merrill Lynch, Pierce, Fenner &
Smith Incorporated and J.P. Morgan Securities LLC as the Joint Book
Runners. Bank of America, N.A. and JPMorgan Chase Bank, N.A. were the
Co-Syndication Agents. Merrill Lynch, Pierce, Fenner & Smith
Incorporated, J.P. Morgan Securities LLC, KeyBanc Capital Markets Inc.
and Deutsche Bank Securities Inc. were the U.S. Joint Lead Arrangers.
Merrill Lynch, Pierce, Fenner & Smith Incorporated, J.P. Morgan
Securities LLC and RBC Capital Markets were the Canadian Joint Lead
Arrangers. KeyBank National Association was the Administrative Agent.
Deutsche Bank Securities Inc. served as the Documentation Agent.
HCN, an S&P 500 company with headquarters in Toledo, Ohio, is a real
estate investment trust that invests across the full spectrum of seniors
housing and health care real estate. The company also provides an
extensive array of property management and development services. As of
March 31, 2014, the company's broadly diversified portfolio consisted of
1,212 properties in 46 states, the United Kingdom, and Canada.
This document may contain "forward-looking" statements as defined in the
Private Securities Litigation Reform Act of 1995. When the company uses
words such as "may," "will," "intend," "should," "believe," "expect,"
"anticipate," "project," "estimate" or similar expressions that do not
relate solely to historical matters, it is making forward-looking
statements. Forward-looking statements are not guarantees of future
performance and involve risks and uncertainties that may cause the
company's actual results to differ materially from the company's
expectations discussed in the forward-looking statements. This may be a
result of various factors, including, but not limited to, those factors
discussed in the company's reports filed from time to time with the
Securities and Exchange Commission. The company undertakes no obligation
to update or revise publicly any forward-looking statements, whether
because of new information, future events or otherwise, or to update the
reasons why actual results could differ from those projected in any
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