Healthcare Realty Trust Announces $100 Million Redemption of Its $400 Million Senior Notes Due 2021
October 02 2017 - 5:00PM
Healthcare Realty Trust Incorporated (NYSE:HR) today announced that
it intends to redeem $100.0 million of its $400.0 million
outstanding 5.75% Senior Notes due 2021 (the “Notes”) in accordance
with the terms of the indenture governing the Notes. The Company
intends to use net proceeds from the issuance of 8.3 million shares
of common stock on August 14, 2017 and borrowings under its
unsecured revolving credit facility to fund the redemption. The
Company expects to record a charge in the fourth quarter of 2017 of
approximately $12.2 million for early extinguishment of debt, which
includes approximately $0.5 million of unamortized costs and
discounts.
The Company will redeem the $100.0 million portion of the Notes
on November 1, 2017 (the “Redemption Date”) at a redemption price
equal to an aggregate of $113.4 million, consisting of: a) $100.0
million in outstanding principal; b) $1.7 million in interest
accrued but not yet paid as of the Redemption Date; and c) a
“make-whole amount” of $11.7 million in accordance with the
indenture.
The redemption price for the redeemed Notes and accrued interest
will become due and payable on the Redemption Date. Following that
date, interest will cease to accrue and be payable on the redeemed
Notes and the redeemed Notes will be cancelled. Payment of the
redemption price will be made only upon presentation and surrender
of the redeemed Notes in the manner specified in the notice of
redemption, which is being provided to registered holders of the
Notes by Branch Banking and Trust Company (“BB&T”), as trustee
for the Notes. Copies of the applicable notice of redemption for
the redeemed Notes may be obtained from BB&T by calling its
Corporate Trust Department at (252) 246-4679.
Healthcare Realty Trust is a real estate investment trust that
integrates owning, managing, financing and developing
income-producing real estate properties associated primarily with
the delivery of outpatient healthcare services throughout the
United States. As of June 30, 2017, the Company had gross
investments of approximately $3.6 billion in 197 real estate
properties in 26 states totaling approximately 14.5 million square
feet. The Company provided leasing and property management services
to approximately 10.9 million square feet nationwide.
In addition to the historical information contained
within, the matters discussed in this press release may contain
forward-looking statements that involve risks and uncertainties,
including the use of proceeds from the note offering. These risks
are discussed in filings with the Securities and Exchange
Commission by Healthcare Realty Trust, including its Annual Report
on Form 10-K for the year ended December 31, 2016 under the heading
“Risk Factors.” Forward-looking statements represent the
Company's judgment as of the date of this release. The
Company disclaims any obligation to update forward-looking
material.
Carla BacaDirector of Corporate
CommunicationsP: 615.269.8175
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