HCP Closes $2B Credit Facility

HCP owns Aegis Dana Point in Dana Point, Calif. HCP owns Aegis Dana Point in Dana Point, Calif.

IRVINE, Calif. — HCP (NYSE: HCP), an Irvine-based healthcare REIT and the fourth-largest owner of seniors housing properties, has closed on a new $2 billion unsecured revolving credit facility.

The new facility reduces the company's funded interest cost for committed loans by five basis points and has a maturity date of Oct. 19, 2021. Based on the company's current senior unsecured long-term debt ratings, the facility bears interest annually at LIBOR plus 100 basis points and has a facility fee of 20 basis points.

The facility also includes two six-month extension options and the ability to increase the commitments by an aggregate amount up to $750 million.

"We are extremely pleased with the strong support from our banking partners with 100 percent continued participation from our top-tier lenders and commitments from 23 financial institutions exceeding $3 billion," says Peter Scott, HCP’s executive vice president and chief financial officer. "Combined with no material debt maturities until 2019, this transaction further enhances our liquidity position and strengthens our balance sheet."

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