HTA - Healthcare Realty Trust and Healthcare Trust of America updates on strategic combination

Healthcare Realty Trust (NYSE:HR) and Healthcare Trust of America (NYSE:HTA) updated on its earlier announced $18B strategic combination, creating the preeminent medical office building REIT. Both the companies have received letters of intent from, and are in advanced negotiations with, three institutional investors for a combination of joint ventures and asset sales totaling $1.7B at a weighted average cap rate of ~4.8%. Net proceeds from these transactions would be ~$1.6B. The transactions may occur in separate tranches whose proceeds will be used to fund the $1.1B special cash dividend to HTA stockholders and also accretively fund future growth for the combined company. Healthcare Realty and HTA have secured initial commitments for amended and restated credit facilities - a $1.5B revolving credit facility, a $1.5B of term loans, including $650 million of new capacity, a $1.1B asset sale term loan to replace the transaction bridge loan commitment. Definitive merger documents are expected to

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Healthcare Realty Trust and Healthcare Trust of America updates on strategic combination