HCP to Acquire HCR ManorCare’s Senior Living Facilities

Skadden is representing HCP, Inc. in its $6.1 billion acquisition of the senior living facilities of HCR ManorCare, Inc., announced on December 13. HCP is an S&P 500 real estate investment trust (REIT) that invests in real estate serving the health care industry.

Upon the deal’s closing, HCR ManorCare will continue to manage and operate the facilities under a new master lease, which is the largest in U.S. history. In addition to advising on the acquisition and lease, Skadden is representing HCP on its financing of the transaction, which includes a $1.5 billion primary offering of common stock — the largest REIT follow-on offer in history — and a $3.3 billion fully committed bridge loan.