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Fitch Rates Health Care REIT, Inc.'s $1.4B Senior Unsecured Note Issuance 'BBB'; Outlook Stable

^{Published on 2011-03-10 11:50:59 - Market Wire}
 

NEW YORK--([ BUSINESS WIRE ])--Fitch Ratings has assigned 'BBB' ratings to the $1.4 billion senior unsecured note issuance priced March 9, 2011 by Health Care REIT, Inc. (NYSE:HCN). The notes are being issued in five-, 11-, and 30-year tranches, and will rank equally with other senior unsecured indebtedness of HCN. The $400 million five-year notes due March 15, 2016 have a coupon of 3.625%, and are priced to yield 3.705% to maturity; the $600 million 11-year notes due Jan. 15, 2022 have a coupon of 5.25%, and are priced to yield 5.332% to maturity; and the $400 million 30-year notes due March 15, 2041 have a coupon of 6.50%, and are priced to yield 6.571% to maturity. HCN's Issuer Default Rating is 'BBB'. The Rating Outlook is Stable.

HCN's issuance is contingent upon the successful completion of its acquisition of substantially all of the real estate assets of Genesis HealthCare Corporation (Genesis HealthCare). If the Genesis HealthCare transaction is not completed on or prior to Aug. 28, 2011 (subject to extension rights if certain conditions are met), the company will be required to redeem the notes at a price equal to 101% of par, plus any accrued and unpaid interest.

For additional information, please refer to Fitch's press release, 'Fitch Affirms Health Care REIT, Inc. at 'BBB'; Outlook Stable,' dated March 2, 2011, available at [ www.fitchratings.com ].

Based in Toledo, Ohio, Health Care REIT, Inc. is a real estate investment trust that invests across the full spectrum of senior housing and health care real estate. The company also provides property management and development services. As of Dec. 31, 2010, the company's portfolio consisted of investments in 683 properties in 39 states.

Additional information is available at [ www.fitchratings.com ].

Applicable Criteria and Related Research:
--'Corporate Rating Methodology', Aug. 13, 2010;
--'Criteria for Rating U.S. Equity REITs and REOCs', April 16, 2010;
--'Recovery Rating and Notching Criteria for REITs', Dec. 23, 2009.

Applicable Criteria and Related Research:
Recovery Rating and Notching Criteria for REITs
[ http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=492828 ]
Criteria for Rating U.S. Equity REITs and REOCs
[ http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=510465 ]
Corporate Rating Methodology
[ http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=546646 ]

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