Published on 5/1/2023 in the Prospect News Investment Grade Daily.
New Issue: Healthpeak sells $350 million more 5.25% notes due 2032 at 190 bps over Treasuries
By Marisa Wong
Los Angeles, May 1 – Healthpeak Properties, Inc. priced $350 million of additional 5.25% senior notes due Dec. 15, 2032 (expected: Baa1/BBB+) at a spread of 190 basis points over Treasuries on Monday, according to an FWP filed with the Securities and Exchange Commission.
The notes were sold via Healthpeak OP, LLC and are guaranteed by Healthpeak Properties.
The notes will be part of the same series as the initial $400 million of 5.25% notes due 2032 sold in January.
The tap issue priced at 98.356 to yield 5.472%.
Wells Fargo Securities, LLC, TD Securities (USA) LLC, Mizuho Securities USA LLC, Barclays, RBC Capital Markets, LLC, BofA Securities, Inc., Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. LLC are the joint bookrunners.
Proceeds from the add-on will be used to repay a portion of the company’s outstanding commercial paper and for general corporate purposes, which may include repaying or repurchasing other debt, working capital, acquisitions, development activities and capital expenditures.
Based in Denver, Healthpeak is a real estate investment trust that owns and develops health care real estate within the United States.
| Issuer: | Healthpeak OP, LLC
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| Guarantor: | Healthpeak Properties, Inc.
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| Amount: | $350 million
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| Issue: | Senior notes, add-on
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| Maturity: | Dec. 15, 2032
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| Bookrunners: | Wells Fargo Securities, LLC, TD Securities (USA) LLC, Mizuho Securities USA LLC, Barclays, RBC Capital Markets, LLC, BofA Securities, Inc., Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. LLC
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| Co-managers: | PNC Capital Markets LLC, Scotia Capital (USA) Inc., Truist Securities, Inc., M&T Securities, Inc., Regions Securities LLC, Huntington Securities, Inc. and SMBC Nikko Securities America, Inc.
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| Trustee: | Bank of New York Mellon Trust Co., NA
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| Counsel to issuer: | Latham & Watkins LLP and Ballard Spahr LLP
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| Counsel to underwriters: | Sidley Austin LLP
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| Coupon: | 5.25%
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| Price: | 98.356
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| Yield: | 5.472%
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| Spread: | Treasuries plus 190 bps
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| Call options: | Make-whole call at Treasuries plus 30 bps until Sept. 15, 2032; par call after that
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| Trade date: | May 1
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| Settlement date: | May 10
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| Expected ratings: | Moody’s: Baa1
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| S&P: BBB+
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| Distribution: | SEC registered
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| Total issuance: | $750 million, including $400 million issued on Jan. 17
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| Cusip: | 42250PAE3
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