DOW JONES NEWSWIRES
Health Care REIT Inc. (HCN) plans to sell 5 million shares in a
public offering, tapping capital markets that have rallied over the
past few months.
The sale would dilute current shares about 5%, if the 15%
over-allotment option is exercised.
Shares fell 2.8% to $41.50 in after-hours trading. The stock is
down about 15% in the past year.
The company, which has investments including assisted living and
skilled nursing facilities, will use proceeds from this offering to
retire about $53.1 million of mortgages payable and to invest in
properties. It also may use the proceeds to repay borrowings under
its unsecured line of credit and other outstanding debt.
Earlier this month, Chief Executive George Chapman said the
company has been waiting for capital to become more available at
"reasonable" prices. Many REITS have delayed acquisition and
development plans during the economic downturn, partly to appease
investors and preserve liquidity.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
Kathy.Shwiff@dowjones.com