HCP Releases 15M Shares to Fund Development, Acquisition Pipeline

IRVINE, Calif. — HCP Inc. (NYSE: HCP) has agreed to sell 15 million shares of its common stock in order to help fund its development and acquisition pipeline.

HCP is a publicly traded REIT serving the healthcare and seniors housing sectors. With a portfolio of 281 communities and 31,911 units, the company is the fifth largest owner of seniors housing in the United States, according to the American Seniors Housing Association.

The public offering consists of 2 million shares offered directly by the company and 13 million shares offered on a forward basis in connection with a forward sale agreement at a price of $28.90 per share. The forward purchaser — BofA Merrill Lynch — has also granted the underwriters a 30-day option to purchase up to an additional 2.3 million shares.

BofA Merrill Lynch is acting as lead book-runner, with Citigroup, RBC Capital Markets and UBS Investment Bank acting as additional book-runners for this offering.

Any funds raised beyond what’s needed for pending development and acquisition deals will be used for general corporate purposes, including repaying debt.

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