News Column

HCP Prices $800 million of 3.875% Senior Unsecured Notes Due 2024

August 7, 2014



IRVINE, Calif.--(BUSINESS WIRE)-- HCP, Inc. (NYSE:HCP) today priced an offering of $800 million of 3.875% senior unsecured notes due 2024. The offering size was increased in response to investor demand. The price to investors was 99.630% of the principal amount of the notes representing a yield-to-maturity of 3.920%.

The net proceeds from the offering after expenses are approximately $789.7 million and will be used together with cash on hand to repay the amount outstanding under HCPs revolving line of credit, which was $300 million as of August 6, 2014. Such borrowings were principally used to (a) fund a portion of the recent acquisitions disclosed in HCPs Quarterly Report for the quarter ended June 30, 2014 and (b) repay an aggregate of $87 million of HCPs medium-term notes, which matured on June 15, 2014. HCP intends to use the remaining net proceeds raised in the offering for general corporate purposes, which may include the funding of the cash contribution to its previously announced strategic joint venture with Brookdale Senior Living Inc. or other future acquisitions, investments or repayment of indebtedness.

The offering is expected to close on August 14, 2014, subject to customary closing conditions.

Merrill Lynch, Pierce, Fenner & Smith Incorporated, Barclays Capital Inc., Morgan Stanley & Co. LLC, RBC Capital Markets, LLC and UBS Securities LLC are acting as joint book-running managers for the offering.

This offering of notes may be made only by means of a prospectus supplement and a prospectus. A copy of the prospectus supplement and the prospectus relating to the offering will be filed with the Securities and Exchange Commission and, when available, can be obtained from: (i) Merrill Lynch, Pierce, Fenner & Smith Incorporated, 222 Broadway, 11th Floor, New York, NY 10038, Attention: Prospectus Department, toll-free at 800-294-1322 or by emailing dg.prospectus_requests@baml.com; (ii) Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, toll-free at 1-888-603-5847, or by emailing barclaysprospectus@broadridge.com; (iii) Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014, toll-free at (866) 718-1649, or by emailing prospectus@morganstanley.com; (iv) RBC Capital Markets, LLC, Three World Financial Center, 200 Vesey Street, New York, NY 10281, Attention: Debt Capital Markets, toll-free at 866-375-6829 or by emailing usdebtcapitalmarkets@rbccm.com; or (v) UBS Securities LLC, 299 Park Avenue, New York, New York 10171, Attention Prospectus Department or toll-free at 1-877-827-6444, ext. 561 3884.

This communication shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification thereof under the securities laws of any such state or jurisdiction.

About HCP

HCP, Inc. is a fully integrated real estate investment trust (REIT) that invests primarily in real estate serving the healthcare industry in the United States. HCP's portfolio of assets is diversified among five distinct sectors: senior housing, post-acute/skilled nursing, life science, medical office and hospital. A publicly traded company since 1985, HCP: (i) was the first healthcare REIT selected to the S&P 500 index; (ii) has increased its dividend per share for 29 consecutive years; (iii) is the only REIT included in the S&P 500 Dividend Aristocrats index; and (iv) is a global leader in sustainability as a member of the CDP, Dow Jones and FTSE4Good sustainability leadership indices, and the Global and North American healthcare sector leader for GRESB.

Forward-looking Statements

The statements contained in this release which are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements. These risks and uncertainties include general economic conditions and the ability of HCP to complete the offering and deploy the resulting proceeds as indicated above, including the risk that the offering described above will not close on the indicated timetable or at all, and that the proceeds may not be able to be deployed as so indicated. Some of these risks, and other risks, are described from time to time in HCP's Securities and Exchange Commission filings.



Timothy M. Schoen

Executive Vice President and Chief Financial Officer

(949) 407-0400

Source: HCP, Inc.


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