NASHVILLE, Tenn., April 15, 2015 /PRNewswire/ -- Healthcare Realty Trust Incorporated (NYSE: HR) today announced that it intends to redeem all of its outstanding 6.50% Senior Notes due 2017 (the "Notes") in accordance with the terms of the indenture governing the Notes. The Company intends to use the net proceeds from the issuance of its 3.875% senior notes due 2025, which notes are expected to be issued on April 24, 2015, subject to customary closing conditions, cash on hand, and additional borrowings under its unsecured credit facility to fund the redemption. The Company expects to record a one-time charge in the second quarter of 2015 of approximately $26.8 million for early extinguishment of debt.
The Company will redeem all of the Notes on May 15, 2015 (the "Redemption Date") at a redemption price equal to an aggregate of $333.2 million, consisting of: a) $300.0 million in outstanding principal; b) $6.4 million in interest accrued but not yet paid as of the Redemption Date; and c) a "make-whole amount" of $26.8 million in accordance with the indenture.
The redemption price for the Notes and accrued interest will become due and payable on the Redemption Date. Following that date, interest will cease to accrue and be payable and the Notes will be cancelled. Payment of the redemption price will be made only upon presentation and surrender of the Notes in the manner specified in the notice of redemption, which is being provided to registered holders of the Notes by Regions Bank, as trustee for the Notes. Copies of the applicable notice of redemption for the Notes may be obtained from Regions Bank by calling its Corporate Trust Department at 615.770.4354.
Healthcare Realty Trust 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. The Company had investments of approximately $3.2 billion in 199 real estate properties and mortgages as of December 31, 2014. The Company's 198 owned real estate properties are located in 30 states and total approximately 14.2 million square feet. The Company provides property management services to approximately 9.5 million square feet nationwide.
In addition to the historical information contained within, the matters discussed in this press release may contain forward-looking statements that involve risks and uncertainties, including the use of proceeds from the note offering. These risks are discussed in filings with the Securities and Exchange Commission by Healthcare Realty Trust, including its Annual Report on Form 10-K for the year ended December 31, 2014 under the heading "Risk Factors." Forward-looking statements represent the Company's judgment as of the date of this release. The Company disclaims any obligation to update forward-looking material.
SOURCE Healthcare Realty Trust Incorporated