Loan & DebtMay 4, 2026, 07:25 AM
Healthcare Realty L.P. to Offer $500M Exchangeable Senior Notes Due 2032
AI Summary
Healthcare Realty Trust's operating partnership, Healthcare Realty Holdings, L.P., announced its intent to offer $500 million in exchangeable senior notes due 2032 in a private offering. The notes will be fully and unconditionally guaranteed by Healthcare Realty. Proceeds from the offering will be used to fund capped call transactions, repurchase up to $75 million of Healthcare Realty's class A common stock, and repay outstanding 3.500% Senior Notes due 2026.
Key Highlights
- Healthcare Realty L.P. to offer $500,000,000 aggregate principal amount of exchangeable senior notes due 2032.
- Initial purchasers have an option to buy up to an additional $75,000,000 in notes.
- Notes will mature on January 15, 2032, and will be senior, unsecured obligations.
- Proceeds will fund capped call transactions and repurchase up to $75.0 million of common stock.
- Remainder of proceeds, with credit facility borrowings, will repay 3.500% Senior Notes due 2026.
- Notes are redeemable by Healthcare Realty L.P. on or after January 22, 2030, under certain conditions.
- Capped call transactions are expected to reduce potential dilution to class A common stock.