Healthcare Trust of America, Inc. Announces Results of Early Participation in Exchange Offers and Consent Solicitations
Healthcare Realty Trust has successfully secured agreements from over 97% of HR Notes holders to participate in an exchange offer, as of the Early Consent Date on June 28, 2022. The company aims to exchange HR Notes for new notes issued by Healthcare Trust of America Holdings, LP, which will amend restrictive covenants in the existing indenture. Significant participation rates include 99.62% for the 2.050% Senior Notes due 2031. The Exchange Offers are scheduled to close on July 20, 2022, and are contingent on the successful completion of a planned merger with Healthcare Trust of America.
- Over 97% of HR Notes holders agreed to the exchange offer, facilitating the proposed amendments.
- High participation rates observed in various series of HR Notes, with 99.62% for the 2.050% Senior Notes due 2031.
- The Exchange Offers are conditioned upon the completion of the Merger, introducing uncertainty regarding its successful execution.
- Potential risks related to management's focus on merger completion instead of ongoing operations could impact future performance.
Holders of greater than
SCOTTSDALE, Ariz., June 29, 2022 (GLOBE NEWSWIRE) -- Healthcare Trust of America, Inc. (“HTA”, NYSE: HTA) announced today that, as of 5:00 p.m., New York City time, on June 28, 2022 (the “Early Consent Date”), the aggregate principal amounts of each series of notes listed in the table below (collectively, the “HR Notes”) previously issued by Healthcare Realty Trust Incorporated (“HR”), had been validly tendered and not validly withdrawn in connection with HTA’s previously announced offers to exchange all validly tendered and accepted HR Notes of each such series for notes to be issued by Healthcare Trust of America Holdings, LP (“HTA OP” and together with HTA, the “Company”), and the related solicitation of consents from holders of the HR Notes to amend the indenture governing the HR Notes to, among other things, eliminate substantially all of the restrictive covenants in such indenture. Holders of HR Notes who validly tender such notes after the Early Consent Date and at or prior to the Expiration Date (which is 5:00 p.m., New York City time, July 20, 2022 unless extended) will not receive the early participation premium which is equal to
| Series of HR Notes | Tenders and Consents Received as of the Early Consent Date | Percentage of Total Outstanding Principal Amount of Such Series of HR Notes | |
As of the Early Consent Date, HTA has received valid consents to the proposed amendments from the holders of at least a majority of the outstanding aggregate principal amount of each series of the HR Notes, each voting as a separate series. Accordingly, subject to the below, the proposed amendments will become effective on the settlement date, which is expected to be on or about the second business day following the Expiration Date. The consummation of the exchange offers and consent solicitations (together, the “Exchange Offers”) is subject to, and conditioned upon, the satisfaction or waiver (other than the waiver of the condition requiring consummation of the Merger (as defined in the Preliminary Prospectus referred to below)) of the conditions set forth in the Company’s preliminary prospectus, dated as of June 14, 2022 (the “Preliminary Prospectus”), which forms a part of the Registration Statement, including, among other things, the consummation of the Merger, which is currently expected to close on July 20, 2022, subject to customary closing conditions. The Exchange Offers will expire at 5:00 p.m., New York City time on July 20, 2022.
The closing of the Merger is not conditioned upon the completion of the Exchange Offers. The closing of the Exchange Offers is conditioned upon the completion of the Merger.
The dealer manager and solicitation agent for the Exchange Offers is:
Wells Fargo Securities, LLC
550 South Tryon Street, 5th Floor
Charlotte, North Carolina 28202
Attention: Liability Management Group
Collect: (704) 410-4759
Toll Free: (866) 309-6316
Email: liabilitymanagement@wellsfargo.com
The exchange agent and information agent for the Exchange Offers is:
D.F. King & Co., Inc.
48 Wall Street, 22nd Floor
New York, New York 10005
Attn: Michael Horthman
Bank and Brokers Call Collect: (212) 269-5550
All Others, Please Call Toll-Free: (800) 334-0384 Email: hr@dfking.com
Requests for copies of the Prospectus can be made directly to the exchange agent and information agent listed above or by visiting the investor relations page of the HTA website at: www.ir.htareit.com.
This press release shall not constitute an offer to sell, or a solicitation of an offer to buy, any of the securities described herein and is also not a solicitation of the related consents. The Exchange Offers may be made only pursuant to the terms and conditions of the Prospectus and the other related materials. A Registration Statement relating to the HTA Notes has been filed with the SEC and was declared effective on June 28, 2022.
About Healthcare Trust of America, Inc.
Healthcare Trust of America, Inc. (NYSE: HTA) is the largest dedicated owner and operator of medical office buildings in the United States, with assets comprising approximately 26.0 million square feet of gross leasable area, and with
About Healthcare Realty Trust Incorporated
Healthcare Realty Trust Incorporated (NYSE: HR) is a real estate investment trust that integrates owning, managing, financing and developing income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States. As of March 31, 2022, the Company was invested in 263 real estate properties in 23 states totaling 17.9 million square feet and had an enterprise value of approximately
Forward-Looking Statements
This press release contains certain forward-looking statements with respect to HTA. Forward-looking statements are statements that are not descriptions of historical facts and include statements regarding management’s intentions, beliefs, expectations, plans or predictions of the future, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Because such statements include risks, uncertainties and contingencies, actual results may differ materially and in adverse ways from those expressed or implied by such forward-looking statements. These risks, uncertainties and contingencies include, without limitation, the following: HTA’s ability to consummate the Merger with HR on the proposed terms or on the anticipated timeline, or at all, including risks and uncertainties related to securing the necessary stockholder approvals and satisfaction of other closing conditions to consummate the Merger; the occurrence of any event, change or other circumstance that could give rise to the termination of the definitive merger agreement relating to the Merger; risks related to diverting the attention of HTA and HR management from ongoing business operations; failure to realize the expected benefits of the Merger; significant transaction costs and/or unknown or inestimable liabilities; risks associated with stockholder litigation in connection with the Merger, including resulting expense or delay; the risk that HTA’s business will not be integrated successfully or that such integration may be more difficult, time-consuming or costly than expected; the ability to obtain the expected financing to consummate the Merger; risks related to future opportunities and plans for HTA, including the uncertainty of expected future financial performance and results of the combined company following completion of the Merger; effects relating to the announcement of the proposed transaction or any further announcements or the consummation of the Merger on the market price of HTA’s or HR’s common stock; the possibility that, if the combined company does not achieve the perceived benefits of the Merger as rapidly or to the extent anticipated by financial analysts or investors, the market price of HTA’s common stock could decline; general adverse economic and local real estate conditions; changes in economic conditions generally and the real estate market specifically; legislative and regulatory changes, including changes to laws governing the taxation of REITs and changes to laws governing the healthcare industry; the availability of capital; changes in interest rates; competition in the real estate industry; the supply and demand for operating properties in HTA’s proposed market areas; changes in accounting principles generally accepted in the US; policies and guidelines applicable to REITs; the availability of properties to acquire; the availability of financing; pandemics and other health concerns, and the measures intended to prevent their spread, including the currently ongoing COVID-19 pandemic; and the potential material adverse effect these matters may have on HTA’s business, results of operations, cash flows and financial condition. Additional information concerning HTA and its business, including additional factors that could materially and adversely affect HTA’s financial results, include, without limitation, the risks described under Part I, Item 1A - Risk Factors, in HTA’s 2021 Annual Report on Form 10-K and in HTA’s other filings with the SEC.
Financial Contact:
Robert Milligan
Chief Financial Officer
Healthcare Trust of America, Inc.
480.998.3478
RobertMilligan@htareit.com
FAQ
What percentage of HR Notes holders agreed to the exchange offer?
What are the key dates for the HR Notes exchange offer?
What is the expected outcome of the HR Notes exchange offers?
What are the participation rates for specific HR Notes series?
What risks are associated with the merger and exchange offers?
