Healthcare Trust of America Announces Pricing of $800 million of 2.000% Senior Unsecured Notes Due 2031

Rhea-AI Summary

Healthcare Trust of America (HTA) has announced the pricing of its $800 million offering of 2.000% senior unsecured notes due 2031, with a closing date projected for September 28, 2020. The proceeds will be used to redeem existing 3.70% Senior Notes due 2023, pay down debt under its revolving credit facility, and for general corporate purposes. As of June 30, 2020, HTA owns approximately 24.9 million square feet of medical office buildings, with $7.3 billion invested. The offering is managed by major financial institutions, including Jefferies and J.P. Morgan.

Positive

• Successfully priced $800 million in senior unsecured notes at a low interest rate of 2.000%.
• Plans to use proceeds to redeem higher interest 3.70% Senior Notes due 2023, reducing future interest expenses.
• Significant assets with $7.3 billion invested in healthcare real estate.
• Strong market focus on medical office buildings in leading gateway markets.

Negative

• Market conditions may affect effective deployment of proceeds.
• Potential risks from health concerns like the ongoing COVID-19 pandemic impacting operations.

SCOTTSDALE, Ariz., Sept. 15, 2020 /PRNewswire/ -- Healthcare Trust of America, Inc. ("HTA") (NYSE: HTA) announced today that its operating partnership, Healthcare Trust of America Holdings, LP ("HTALP" and, together with HTA, the "Company"), priced a $800 million offering of HTALP's 2.000% senior unsecured notes due 2031 (the "2031 Notes") under its existing shelf registration statement. The 2031 Notes were priced at 99.196% of the principal amount. The closing of the offering is expected to occur on September 28, 2020, subject to the satisfaction of customary closing conditions.

The Company intends to use the net proceeds of this offering (i) to redeem all of HTALP's outstanding 3.70% Senior Notes due 2023, (ii) to repay a portion of the outstanding indebtedness under its unsecured revolving credit and term loan facility and (iii) for general corporate purposes, including, without limitation, working capital and investment in real estate.

Jefferies LLC, J.P. Morgan Securities LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC are acting as joint book-running managers and representatives of the underwriters for the offering. BofA Securities, Inc., BMO Capital Markets Corp., Capital One Securities, Inc., Morgan Stanley & Co. LLC and MUFG Securities Americas Inc. are acting as joint book-running managers for the offering. Acting as co-managers are BBVA Securities Inc., Fifth Third Securities, Inc., Regions Securities LLC and Scotia Capital (USA) Inc.

A registration statement relating to these securities has been filed with and declared effective by the Securities and Exchange Commission (the "SEC"). The offering of the Notes is being made solely by means of a prospectus supplement and the accompanying prospectus. You may obtain copies of the prospectus supplement and accompanying prospectus without charge from the SEC at www.sec.gov. Alternatively, you may request copies of these documents relating to the offering, when available, from (i) Wells Fargo Securities, LLC by calling 1-800-645-3751, (ii) Jefferies by calling 1-877-877-0696, (iii) J.P. Morgan Securities LLC by calling collect 1-212 834 4533, or (iv) U.S. Bancorp Investments, Inc. by calling 1-877-558-2607.

This announcement shall not constitute an offer to sell or a solicitation of an offer to buy the Notes, nor shall there be any sale of the Notes in any jurisdiction in which such offer, solicitation, or sale would be unlawful under the securities laws of any such jurisdiction.

About Healthcare Trust of America, Inc.

Healthcare Trust of America, Inc. is the largest dedicated owner and operator of medical office buildings in the United States, comprising approximately 24.9 million square feet of gross leasable area, with $7.3 billion invested primarily in medical office buildings as of June 30, 2020.  HTA provides real estate infrastructure for the integrated delivery of healthcare services in highly-desirable locations.  Investments are targeted to build critical mass in 20 to 25 leading gateway markets that generally have leading university and medical institutions which translates to superior demographics, high-quality graduates, intellectual talent and job growth.  The strategic markets HTA invests in support a strong, long-term demand for quality medical office space.  HTA utilizes an integrated asset management platform consisting of on-site leasing, property management, engineering and building services, and development capabilities to create complete, state of the art facilities in each market.  This drives efficiencies, strong tenant and health system relationships, and strategic partnerships that result in high levels of tenant retention, rental growth and long-term value creation.  Headquartered in Scottsdale, Arizona, HTA has developed a national brand with dedicated relationships at the local level.

Forward-Looking Statements

This press release contains certain forward-looking statements.  Forward-looking statements are based on current expectations, plans, estimates, assumptions and beliefs, including expectations, plans, estimates, assumptions and beliefs about the Company, stockholder value and earnings growth.

The forward-looking statements included in this press release are subject to numerous risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements.  Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the Company's control.  Although the Company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, the Company's actual results and performance could differ materially and in adverse ways from those set forth in the forward-looking statements.  Factors which could have a material adverse effect on the Company's operations and future prospects include, but are not limited to:

• the Company's ability to effectively deploy proceeds of offerings of securities;
• changes in economic conditions affecting the healthcare property sector, the commercial real estate market and the credit market;
• competition for acquisition and development of medical office buildings and other facilities that serve the healthcare industry;
• the Company's ability to acquire or develop real properties, and to successfully operate those properties once acquired or developed;
• pandemics and other health concerns, and the measures intended to prevent their spread, including the currently ongoing COVID-19 pandemic;
• economic fluctuations in certain states in which the Company's investments are geographically concentrated;
• financial stability and solvency of the Company's tenants, including the ability and willingness of the Company's tenants or borrowers to satisfy obligations under their respective contractual arrangements with the Company and the potential inability of the Company to enforce its rights under its leases during the pendency of any pandemic;
• the ability and willingness of the Company's tenants to renew their leases with the Company upon expiration of the leases or the Company's ability to reposition its properties on the same or better terms in the event of a nonrenewal or in the event the Company exercises its right to replace an existing tenant;
• fluctuations in reimbursements from third party payors such as Medicare and Medicaid;
• supply and demand for operating properties in the market areas in which the Company operates;
• changes in operating expenses of the Company's properties including, but not limited to, expenditures for property taxes, property and liability insurance premiums, and utility rates;
• the Company's ability and the ability of its tenants to obtain and maintain adequate property, liability and other insurance from reputable, financially stable providers;
• restrictive covenants on certain of the Company's properties subject to ground leases that may restrict or limit the uses of its properties and the types of tenants the Company is able to lease to, and the Company's ability to attract new tenants;
• the impact from damage to the Company's properties from, or increased operating costs associated with, catastrophic weather and other natural events and the physical effect of climate change;
• retention of the Company's senior management team and its ability to attract and retain qualified key personnel;
• legislative and regulatory changes, including changes to laws governing the taxation of real estate investment trusts ("REITs") and changes to laws governing the healthcare industry;
• changes in interest rates, including changes as a result of the potential phasing out of the London Inter-bank Offered Rate ("LIBOR");
• the availability of capital and financing;
• restrictive covenants in the Company's credit facilities;
• changes in the Company's credit ratings;
• HTA's ability to remain qualified as a REIT;
• changes in accounting principles generally accepted in the United States of America, policies and guidelines applicable to REITs; and
• the risk factors set forth in HTA's most recent Annual Report on Form 10-K and in HTA's most recent Quarterly Reports on Form 10-Q.

Forward-looking statements speak only as of the date made.  Except as otherwise required by the federal securities laws, the Company undertakes no obligation to update any forward-looking statements to reflect the events or circumstances arising after the date as of which they are made.  As a result of these risks and uncertainties, readers are cautioned not to place undue reliance on the forward-looking statements included in this press release or that may be made elsewhere from time to time by, or on behalf of, the Company.

Financial Contact:
Robert A. Milligan
Chief Financial Officer
Healthcare Trust of America, Inc.
480.998.3478
RobertMilligan@htareit.com

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SOURCE Healthcare Trust of America, Inc.

FAQ

What is the amount of the senior unsecured notes offered by HTA?

Healthcare Trust of America announced an $800 million offering of 2.000% senior unsecured notes.

When is the closing date for HTA's notes offering?

The closing of the offering is expected to occur on September 28, 2020.

What is the purpose of the proceeds from HTA's notes offering?

The proceeds will be used to redeem existing 3.70% Senior Notes due 2023, pay down debt, and for general corporate purposes.

How much has HTA invested in medical office buildings?

As of June 30, 2020, HTA has invested $7.3 billion in medical office buildings.

Who are the underwriters for HTA's notes offering?

Jefferies LLC, J.P. Morgan Securities LLC, U.S. Bancorp Investments, Inc., and Wells Fargo Securities, LLC are the joint book-running managers.