DENVER - Healthpeak Properties, Inc. (NYSE: NYSE:PEAK), a fully integrated real estate investment trust (REIT), has announced the closure of its merger with Physicians Realty (NYSE:DOC) Trust. The finalized deal will see the combined entity operate under the Healthpeak name, with shares expected to start trading on the New York Stock Exchange under the ticker symbol "DOC" starting March 4, 2024.
Scott Brinker, President and CEO of Healthpeak, expressed satisfaction with the merger's completion, highlighting the anticipated financial benefits.
"This transaction augments our earnings, balance sheet, and platform," said Brinker.
The company has already internalized property management in four markets and plans to extend this to five additional markets by the end of the second quarter. Healthpeak anticipates merger-related synergies to reach $40 million in 2024 and potentially an additional $20 million by the end of 2025.
With the merger's completion, Healthpeak's Board of Directors expanded from 8 to 13 members, incorporating five directors from Physicians Realty Trust. Among them, John Thomas will serve as Vice Chair of the Healthpeak Board.
Concurrently, Healthpeak has secured a new $750 million 5-year unsecured term loan on March 1, 2024. The proceeds are allocated for repaying $210 million of Physicians Realty Trust private placement notes and will support general corporate purposes, including transaction costs and repayment of borrowings under Healthpeak's commercial paper program. Interest rate swaps have fixed the new loan's interest rate at approximately 4.5% for its duration.
The merger received advisory support from financial institutions such as Barclays, Morgan Stanley & Co (NYSE:MS). LLC, J.P. Morgan Securities LLC, Mizuho Securities USA LLC, RBC Capital Markets, and Wells Fargo, with Latham & Watkins LLP serving as legal advisor to Healthpeak. BofA Securities, KeyBanc Capital Markets Inc., BMO Capital Markets Corp., and Baker McKenzie provided advisory services to Physicians Realty Trust.
Healthpeak Properties, a S&P 500 company, specializes in the ownership, operation, and development of healthcare-related real estate. The forward-looking statements in this announcement reflect the company's expectations and are subject to risks and uncertainties that may cause actual results to differ materially.
This news article is based on a press release statement.
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