Just a day after announcing a $750 million debt offering, Welltower’s operating company, Welltower OP, upsized the offering to $900 million in 3.125% exchangeable senior notes due in 2029, the Toledo, OH-based real estate investment trust announced Tuesday.
Welltower OP estimates that the net proceeds from the offering will be $882.3 million after deducting the initial purchasers’ discount and estimated offering expenses. The operating company intends to use the proceeds to repay debt and investment in senior housing, healthcare or wellness properties.
The private placement targeting qualified institutional buyers is expected to close Thursday.
Welltower OP intends to grant the initial buyers of the notes an option to purchase up to an additional $135 million aggregate principal amount of notes, compared with the additional $112.5 million offered Monday.
“The notes will be Welltower OP’s senior unsecured obligations and will accrue interest payable semi-annually in arrears on January 15 and July 15 of each year, beginning on Jan.15, 2025, at a rate of 3.125% per year,” the REIT said.
Welltower may redeem the notes after July 20, 2027, under specific conditions.
