Game-Changing Deal For HCP/Horizon Bay, Morgan Keegan Reports

HCP, Inc. HCP is acquiring the remaining 65% interest in a joint venture that owns 25 senior housing assets operated by Horizon Bay. Morgan Keegan believes this could be a game-changer. “HCP's incremental cash investment of $137 million will consolidate the facilities, which generated revenues of $58 million and FFO of $26 million through the first nine months of 2010,” Morgan Keegan writes. “The transaction will be funded via 25.7 million HCP shares, $1.49 billion Manor Care debt redeemed for $1.72 billion, and $3.528 billion cash that we assume will be funded by stock and debt.” HCP, Inc. closed Monday at $32.52.