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HCP Prices Debt Financing for the Planned Spin-Off of QCP


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HCP, Inc. (HCP - Analyst Report) , the Irvine, CA-based healthcare real estate investment trust (“REIT”) has made the announcement of pricing a $750 million offering of principal amount by its wholly owned subsidiary, Quality Care Properties, Inc. (“QCP”). The senior secured second lien loan with an interest rate of 8.125% is due on 2023. Additionally, the REIT entered into agreements for a $1 billion first lien loan at LIBOR plus 5.25% for a term period of six years. Also, the company embarked on a $100 million first lien revolving credit facility at LIBOR plus 5.25% for a term period of five years.

HCP acquires, develops, manages, sells and leases a diverse portfolio of healthcare real estate related properties. The notes offering and the term loan have been inked in relation to the proposed spin-off of QCP to HCP stockholders. Subject to the satisfaction of certain conditions, the spin-off is likely to be completed in fourth-quarter 2016.

The net proceeds derived from the notes offering and the term loan will be utilized by the QCP for repaying the cash part of the consideration for properties that it will receive from HCP before the spin-off.

HCP currently has a Zacks Rank #3 (Hold).



HCP INC Price | HCP INC Quote

Some better-ranked stocks in the same space include CorEnergy Infrastructure Trust, Inc. (CORR - Snapshot Report) , Crown Castle International Corp. (CCI - Analyst Report) and Seritage Growth Properties (SRG - Snapshot Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Current-quarter estimates for both Crown Castle International and Seritage Growth Properties moved up over the past one month.

CorEnergy Infrastructure Trust’s current-quarter estimates remained stable over the last month.

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