IRVINE, Calif., May 23, 2019 /PRNewswire/ -- HCP, Inc.
(NYSE: HCP) announced today that it has closed an amended and
restated credit agreement providing for a $2.5 billion unsecured revolving credit facility
and a new $250 million unsecured term
loan facility (collectively, the "Credit Facilities").
The amendment and restatement increased the size of the
unsecured revolving credit facility from $2.0 billion to $2.5
billion, extended the maturity date of the unsecured
revolving credit facility to May 23,
2023 with two 6-month extension options, and reduced HCP's
borrowing costs. As of closing, the unsecured revolving
credit facility bears interest at a rate per annum equal to LIBOR
plus 82.5 basis points and has a facility fee on the entire
revolving commitment of 15 basis points per annum, each based on
HCP's current credit ratings.
In addition, the unsecured revolving credit facility
incorporates a sustainability-linked pricing grid that reduces the
borrowing spread if certain benchmarks are achieved each year.
The unsecured term loan facility includes a 90-day delayed-draw
feature, allowing term loans in an aggregate principal amount of up
to $250 million to be drawn during
such period. Any such term loans will mature on May 23, 2024. As of closing, the interest
rate applicable to the unsecured term loan facility would have been
a rate per annum equal to LIBOR plus 90 basis points, based on
HCP's current credit ratings. The unsecured term loan
facility was undrawn at closing.
HCP has the option to increase its borrowing capacity under the
Credit Facilities, subject to customary conditions, by up to an
additional $750 million, for a
maximum borrowing capacity of $3.5
billion.
"This transaction highlights our continued focus on improving
our credit profile by enhancing liquidity, extending maturities and
reducing borrowing costs," said Peter
Scott, Executive Vice President and Chief Financial Officer.
"We are appreciative of our banking group for their continued
support and nearly $4 billion of
commitments, as well as their partnership in advancing HCP's
sustainability efforts."
The Credit Facilities were arranged by BofA Securities, Inc.
("BofA Securities"), JPMorgan Chase Bank, N.A. ("JPMorgan") and
Wells Fargo Securities, LLC. BofA Securities and JPMorgan were also
joint bookrunners for the Credit Facilities. Bank of America, N.A.
acted as administrative agent and JPMorgan and Wells Fargo Bank,
National Association acted as co-syndication agents for the Credit
Facilities.
About HCP
HCP, Inc. is a fully integrated real estate investment trust
(REIT) that invests primarily in real estate serving the healthcare
industry in the United States. HCP owns a large-scale
portfolio diversified across multiple sectors, led by senior
housing, life science and medical office. Recognized as a
global leader in sustainability, HCP has been a publicly-traded
company since 1985 and was the first healthcare REIT selected to
the S&P 500 index. For more information regarding HCP,
visit www.hcpi.com.
Contact
Andrew Johns
Vice President – Finance and Investor Relations
(949) 407-0400
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SOURCE HCP, Inc.