HCP Inc. (HCP) unveiled plans to offer at least 24 million
shares as part of an effort to fund its $6.1 billion deal for HCR
ManorCare Inc.'s real-estate assets.
The REIT had about 326 million shares outstanding at the end of
last year.
It is the latest capital raising for HCP--the biggest
health-care REIT in the U.S. by market capitalization--which
completed stock offerings of $486 million in November and $1.47
billion in December. In January it completed a $2.4 billion sale of
senior unsecured notes.
The deal, unveiled in December, was one of the largest
real-estate deals in 2010, as well as one of the biggest
private-equity transactions. HCR ManorCare, one of the biggest
nursing-home companies in the U.S., is controlled by Carlyle Group
LP. The seller plans to lease back the real estate, shedding its
ownership to focus on providing care.
HCP--whose investments include senior housing, medical-office
and skilled-nursing properties--has seen its revenue climb in
recent quarters. The company in February reported its
fourth-quarter profit surged as both funds from operations and
revenue increased more than expected.
Shares closed Monday at $37.60 and were inactive premarket.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com