Healthcare Trust of America Announces Pricing of $250 million of 3.500% Senior Unsecured Notes Due 2026 and $650 million of 3.100% Senior Unsecured Notes Due 2030

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Sep 05, 2019, 16:43 ET

SCOTTSDALE, Ariz., Sept. 5, 2019 /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 $250 million offering of HTALP's 3.500% senior unsecured notes due 2026 (the "2026 Notes") and a $650 million offering of HTALP's 3.100% senior unsecured notes due 2030 (the "2030 Notes" and, together with the 2026 Notes, the "Notes") under its existing shelf registration statement. The 2026 Notes will be issued as additional notes under an indenture pursuant to which, on July 12, 2016, HTALP issued $350.0 million aggregate principle amount of 3.500% Senior Notes due 2026. The 2026 Notes were priced at 103.660% of the principal amount plus accrued interest from August 1, 2019, with a re-offer yield of 2.889%, and the 2030 Notes were priced at 99.658% of the principal amount. The closing of the offering is expected to occur on September 16, 2019, 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 3.375% Senior Notes due 2021 and 2.950% Senior Notes due 2022, (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.

BofA Securities, Inc., 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. BMO Capital Markets Corp., Capital One Securities, Inc., Jefferies LLC, 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: BofA Securities, Inc., NC1-004-03-43, 200 North College Street, 3rd floor, Charlotte NC 28255-0001, Attn: Prospectus Department, Email: [email protected]; J.P. Morgan Securities LLC, Attention: Investment Grade Syndicate Desk – 3^rd Floor, 383 Madison Avenue, New York, New York 10179, at telephone no. (212) 834-4533; U.S. Bancorp Investments, Inc., Attention: Credit Fixed Income, 214 N. Tryon Street, 26th Floor, Charlotte, North Carolina 28202, at telephone no. (877) 558-2607; or Wells Fargo Securities, LLC, Attention: WFS Customer Service, 608 2^nd Avenue South, Suite 1000, Minneapolis, Minnesota 55402, at telephone no. (800) 645-3751 or email a request to [email protected].

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 23.3 million square feet of gross leasable area, with $6.9 billion invested primarily in medical office buildings. 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 key markets that we believe have superior demographics that support strong, long-term demand for 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. 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;
economic fluctuations in certain states in which the Company's property 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 their obligations under their respective contractual arrangements with the Company;
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 nonrenewal or in the event the Company exercise 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 effects 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;
the availability of capital and financing;
restrictive covenants in the Company's existing credit facilities;
changes in the Company's credit ratings;
the 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 the Company's most recent Annual Report on Form 10-K and in the Company'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.

SOURCE Healthcare Trust of America, Inc.