8-KOther EventsExhibits & Filings

WELLTOWER INC. 8-K Report, Corporate Update (Jun 30, 2020)

Filed June 30, 2020For Securities:WELL

Summary

Welltower Inc. (WELL) announced a significant debt offering and tender offer activity on June 30, 2020. The company successfully issued $600 million of 2.750% Notes due 2031, utilizing an automatic shelf registration statement. The net proceeds from this issuance will initially be used to repay advances under its unsecured credit facility, with a portion allocated to eligible green projects. This move indicates Welltower's proactive approach to managing its capital structure and potentially funding environmentally conscious initiatives. Concurrently, Welltower provided an update on its tender offer for its 3.950% and 3.750% Notes due 2023. The offer, which aimed to purchase up to $426,248,000 of these notes, saw strong participation by the early tender deadline of June 29, 2020. The company announced that the offer was fully subscribed as of the early tender time, meaning no further tenders will be accepted. This action demonstrates Welltower's strategy to optimize its debt maturity profile and potentially reduce its cost of borrowing.

Key Highlights

  • 1Issued $600 million aggregate principal amount of 2.750% Notes due 2031 under an automatic shelf registration statement.
  • 2Net proceeds from the new notes will initially fund the unsecured credit facility, with a portion earmarked for eligible green projects.
  • 3Announced early tender results for its offer to purchase 3.950% and 3.750% Notes due 2023.
  • 4The tender offer for the 2023 Notes was fully subscribed as of the early tender deadline (June 29, 2020).
  • 5Maximum principal amount for the tender offer was increased to $426,248,000.
  • 6Welltower will not accept 2023 Notes tendered after the early tender deadline.
  • 7The tender offer is set to expire on July 14, 2020, unless terminated earlier.

Frequently Asked Questions

The primary purpose of issuing the new notes is to raise capital. Initially, the net proceeds will be used to repay advances under Welltower's unsecured credit facility. Additionally, an amount equal to the net proceeds will be allocated to a portfolio of eligible green projects, suggesting a focus on sustainable financing.

Welltower announced that its tender offer for its 3.950% and 3.750% Notes due 2023 was fully subscribed by the early tender deadline of June 29, 2020. This means that the company received tenders for the maximum intended amount and will not accept any further tenders for these notes. This action is part of Welltower's strategy to manage its debt obligations.

Not immediately. Pending the allocation to eligible green projects, the net proceeds from the sale of the new notes will first be used to repay advances under the company's unsecured credit facility. The allocation to green projects will occur subsequently.

The newly issued notes bear interest at a rate of 2.750% per year, payable semiannually, and mature on January 15, 2031.