Summary
Health Care REIT, Inc. (now Welltower Inc.) announced on June 18, 2010, the successful sale of an additional $152,009,000 aggregate principal amount of its 3.00% convertible senior notes due 2029. These notes are fungible with and form a single series with the previously issued notes of the same denomination, increasing the total outstanding principal amount of this series to $494,403,000. This issuance, conducted under an automatic shelf registration statement, provides the company with additional capital while offering investors a fixed coupon with the potential for equity upside through conversion. The convertible notes carry a 3.00% annual interest rate, payable semi-annually, and mature on December 1, 2029. A key feature for investors is the conversion option, allowing noteholders to convert their notes into cash and potentially shares of the Company's common stock at an initial conversion price of approximately $51.27 per share. The structure for conversion involves receiving cash up to the principal amount and common stock for any value exceeding the principal. Investors should note that these notes are senior unsecured obligations, making them effectively subordinated to secured debt and structurally subordinated to any liabilities of the company's subsidiaries.
Key Highlights
- 1Additional $152,009,000 of 3.00% convertible senior notes due 2029 issued.
- 2Total outstanding principal for this note series increased to $494,403,000.
- 3Notes are fungible and trade interchangeably with previously issued notes in the same series.
- 4Notes bear a 3.00% annual interest rate, payable semi-annually.
- 5Maturity date for the notes is December 1, 2029.
- 6Conversion option allows holders to convert into cash and common stock at an initial price of approximately $51.27 per share.
- 7Notes are senior unsecured obligations, subordinated to secured debt and subsidiary liabilities.