Welltower’s operating company, Welltower OP, has launched an offering of $750 million aggregate principal amount of exchangeable senior notes in a private placement, the real estate investment company announced Monday. The notes will be due in 2029.
Welltower OP also intends to grant the initial buyers of the notes an option to purchase up to an additional $112.5 million aggregate principal amount of notes, according to the announcement.
“The notes will be Welltower OP’s senior unsecured obligations and will accrue interest payable semi-annually in arrears,” the Toledo, OH-based real estate investment trust said.
The operating company intends to use the net proceeds from the offering for general corporate purposes, which may include the repayment or redemption of debt and investment in senior housing, healthcare or wellness properties.
“Pending such use, the net proceeds may be invested in short-term, investment grade, interest-bearing securities, certificates of deposit or indirect or guaranteed obligations of the United States,” according to the company.
During the first quarter, Welltower Executive Vice President and Chief Investment Officer Nikhil Chaudri said previously, the REIT completed gross investments of $449 million, consisting of $241 million of development funding and $208 million in acquisitions and loan funding “comprised solely of seniors and wellness housing property types.”
