We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Welltower Inc. (WELL - Free Report) recently announced the pricing of $1.3 billion of multi-tranche senior unsecured notes. On a combined basis, this new issuance will bear a weighted average blended yield to maturity (YTM) of 4.4% on a weighted average term of 15.4 years.
The notes are spread across three tranches. Senior unsecured notes worth $600 million are due in 2023 and carry a YTM of 3.95%. Debt securities worth $200 million carry yield of 4.25%. These notes are slated to mature in 2028.
Lastly, the $500-million longer-term notes are slated to mature in 2048. The debt obligation carries a YTM of 4.95%.
The offering, subject to fulfillment of customary closing conditions, is expected to close on Aug 16, 2018.
The company plans to utilize net proceeds of this offering to initially settle advances under a Term Loan facility set to mature in July 2020 and other loans under its primary credit facility. Thereafter, the remaining proceeds will be used for general corporate purposes, which may include investing in senior housing and other healthcare assets.
Remaining proceeds will be invested in short-term, interest-bearing, investment-grade securities. Further, investment in certificates of deposit or guaranteed obligations of the United States will be made.
The move provides flexibility to the company and helps meet its financial obligations in an efficient way. This is because the unsecured note issuance will result in a lower cost of capital for this real estate investment trust (REIT).
Also, since unsecured notes can be borrowed at lower rates, this new debt will result in lower funding cost. This is likely to boost Welltower’s financial flexibility which already enjoys a decent balance sheet and ample liquidity. Notably, it exited the June-end quarter with $215 million of cash and cash equivalents. In addition, as of Jun 30, 2018, the company had $2.5 billion of available borrowing capacity under its primary unsecured credit facility.
Welltower currently carries a Zacks Rank #3 (Hold).
Over the past six months, shares of the company have outperformed the industry it belongs to. In fact, its shares have rallied 14.8% compared with the industry’s gain of 8.2% during the same time frame.
Also, the Zacks Consensus Estimate for current-year funds from operations (FFO) per share has been revised marginally upward in a month’s time.
Stocks to Consider
A few better-ranked stocks from the real estate space are Outfront Media Inc. (OUT - Free Report) , PS Business Parks, Inc. and W. P. Carey Inc. (WPC - Free Report) . While Outfront Media sports a Zacks Rank #1 (Strong Buy), PS Business Parks and W. P. Carey carry Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Outfront Media’s Zacks Consensus Estimate for 2018 FFO per share remained unchanged at $2.06 in the last 30 days.
PS Business Parks’ current-year FFO per share estimates inched up 0.3% to $6.39 over the last 30 days.
W. P. Carey’s FFO per share estimates for 2018 moved 5.8% north to $5.12 in 60 days’ time.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
Welltower (WELL) Prices Senior Unsecured Notes Worth $1.3B
Welltower Inc. (WELL - Free Report) recently announced the pricing of $1.3 billion of multi-tranche senior unsecured notes. On a combined basis, this new issuance will bear a weighted average blended yield to maturity (YTM) of 4.4% on a weighted average term of 15.4 years.
The notes are spread across three tranches. Senior unsecured notes worth $600 million are due in 2023 and carry a YTM of 3.95%. Debt securities worth $200 million carry yield of 4.25%. These notes are slated to mature in 2028.
Lastly, the $500-million longer-term notes are slated to mature in 2048. The debt obligation carries a YTM of 4.95%.
The offering, subject to fulfillment of customary closing conditions, is expected to close on Aug 16, 2018.
The company plans to utilize net proceeds of this offering to initially settle advances under a Term Loan facility set to mature in July 2020 and other loans under its primary credit facility. Thereafter, the remaining proceeds will be used for general corporate purposes, which may include investing in senior housing and other healthcare assets.
Remaining proceeds will be invested in short-term, interest-bearing, investment-grade securities. Further, investment in certificates of deposit or guaranteed obligations of the United States will be made.
The move provides flexibility to the company and helps meet its financial obligations in an efficient way. This is because the unsecured note issuance will result in a lower cost of capital for this real estate investment trust (REIT).
Also, since unsecured notes can be borrowed at lower rates, this new debt will result in lower funding cost. This is likely to boost Welltower’s financial flexibility which already enjoys a decent balance sheet and ample liquidity. Notably, it exited the June-end quarter with $215 million of cash and cash equivalents. In addition, as of Jun 30, 2018, the company had $2.5 billion of available borrowing capacity under its primary unsecured credit facility.
Welltower currently carries a Zacks Rank #3 (Hold).
Over the past six months, shares of the company have outperformed the industry it belongs to. In fact, its shares have rallied 14.8% compared with the industry’s gain of 8.2% during the same time frame.
Also, the Zacks Consensus Estimate for current-year funds from operations (FFO) per share has been revised marginally upward in a month’s time.
Stocks to Consider
A few better-ranked stocks from the real estate space are Outfront Media Inc. (OUT - Free Report) , PS Business Parks, Inc. and W. P. Carey Inc. (WPC - Free Report) . While Outfront Media sports a Zacks Rank #1 (Strong Buy), PS Business Parks and W. P. Carey carry Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Outfront Media’s Zacks Consensus Estimate for 2018 FFO per share remained unchanged at $2.06 in the last 30 days.
PS Business Parks’ current-year FFO per share estimates inched up 0.3% to $6.39 over the last 30 days.
W. P. Carey’s FFO per share estimates for 2018 moved 5.8% north to $5.12 in 60 days’ time.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>