DOW JONES NEWSWIRES
HCP Inc. (HCP) boosted its share offering by 35% to 15.5 million
shares amid strong investor demand and priced the shares at a 6.4%
discount to Tuesday's closing price.
The health care real-estate investment trust joins a number of
other companies across industries who have taken advantage of
increased investor appetite for shares to raise cash in recent
months.
Shares were down 1.4% at $25 in early trading.
HCP, which has investments including senior housing, medical
office and skilled nursing properties, had originally said late
Tuesday it would offer 11.5 million shares. It expects proceeds to
repay all borrowings under its revolving credit facility, with any
remainder for general corporate purposes.
The offering will boost shares outstanding by at least 6%, and
underwriters will have the option to buy up to 2.3 million more
shares to cover any excess demand.
Tuesday, the company reported second-quarter funds from
operations rose 10%, beating Wall Street's expectations.
-By Kerry Grace Benn, Dow Jones Newswires; 212-416-2353;
kerry.benn@dowjones.com