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    HLTC   US42226B1052

HEALTHCARE, INC.

(HLTC)
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HEALTHCARE TRUST, INC. : Entry into a Material Definitive Agreement, Material Modification to Rights of Security Holders, Amendments to Articles of Inc. or Bylaws; Change in Fiscal Year, Regulation FD Disclosure, Financial Statements and Exhibits (form 8-K)

10/04/2021 | 05:29pm EST

Item 1.01. Entry into a Material Definitive Agreement.



Underwriting Agreement


On October 1, 2021, Healthcare Trust, Inc. (the "Company") and Healthcare Trust Operating Partnership, L.P. (the "Operating Partnership"), the Company's operating partnership, entered into an underwriting agreement (the "Underwriting Agreement") with B. Riley Securities, Inc., as representative of the underwriters listed on Schedule I thereto (collectively, the "Underwriters") pursuant to which the Company agreed to issue and sell 3,200,000 shares of the Company's 7.125% Series B Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value per share, with a liquidation preference of $25.00 per share (the "Series B Preferred Stock"), in an underwritten public offering at a price per share of $25.00. Pursuant to the Underwriting Agreement, the Company also granted the Underwriters a 30-day option to purchase up to an additional 480,000 shares of Series B Preferred Stock.

In the Underwriting Agreement, the Company and the Operating Partnership made certain customary representations, warranties and covenants and agreed to indemnify the Underwriters against certain liabilities. The offering is scheduled to close on October 6, 2021. The Company expects to receive net proceeds from the offering, after deducting the underwriting discount but not other estimated offering expenses payable by the Company (including a structuring fee), of approximately $77.5 million. The Company will contribute these net proceeds to the Operating Partnership in exchange for a new class of 7.125% Series B Cumulative Redeemable Perpetual Preferred Units in the Operating Partnership (the "Series B Preferred Units"), which have economic interests that are substantially similar to the designations, preferences and other rights of Series B Preferred Stock. The Company, acting through the Operating Partnership, will use the net proceeds from this contribution to repay amounts outstanding under the revolving credit facility as required by the credit facility, and, if all amounts outstanding under the revolving credit facility are so repaid, the Company, acting through the Operating Partnership, will use any remaining amounts for general corporate purposes, including purchases of additional properties. Subject to the terms and conditions set forth in the revolving credit facility, we may then draw on the revolving credit facility to borrow any amounts so repaid for general corporate purposes, including purchases of additional properties.

The offering is being conducted pursuant to the Company's prospectus dated October 1, 2021, in the form filed with the Securities and Exchange Commission (the "SEC") on October 4, 2021 (the "Prospectus"), pursuant to Rule 424(b) under the Securities Act of 1933, as amended (the "Securities Act"), which forms part of the Company's Registration Statement on Form S-11 (File No. 333-259494), which was declared effective on October 1, 2021, and the Company's Registration Statement on Form S-11 (File No. 333-259995), which became effective upon filing on October 1, 2021 pursuant to Rule 462(b) under the Securities Act.

The foregoing description does not purport to be a complete description and is qualified in its entirety by reference to the Underwriting Agreement, which is filed herewith as Exhibit 1.1 and incorporated by reference into this Item 1.01. For a more detailed description of the Underwriting Agreement and a description of the relationships between the Company and the Underwriters, see the disclosure under the caption "Underwriting" contained in the Prospectus, which disclosure is hereby incorporated by reference into this Item 1.01.

Amendment to the Operating Partnership Agreement

On October 4, 2021, the Company, in its capacity as the general partner of the Operating Partnership, entered into an amendment to the agreement of limited partnership of the Operating Partnership (the "Amendment"), to designate and classify the Series B Preferred Units and make certain clarifying revisions to the provisions in the agreement of limited partnership of the Operating Partnership related to distributions and tax allocations and to reflect changes in tax laws.

The foregoing description does not purport to be a complete description and is qualified in its entirety by reference to the Amendment, which is filed herewith as Exhibit 10.1 and incorporated by reference into this Item 1.01.

Item 3.03. Material Modifications to Rights of Security Holders.



Articles Supplementary


On October 4, 2021, the Company filed Articles Supplementary (the "Articles Supplementary") with the State Department of Assessments and Taxation of the State of Maryland, which became effective upon acceptance for record. The Articles Supplementary classified 3,680,000 shares of the Company's authorized but unissued shares of preferred stock as Series B Preferred Stock.

Holders of Series B Preferred Stock are entitled to cumulative dividends in the amount of $1.78125 per share each year, which is equivalent to the rate of 7.125% of the $25.00 liquidation preference per share per annum. The Series B Preferred Stock has no stated maturity and will remain outstanding indefinitely unless redeemed, converted or otherwise repurchased.

On and after October 6, 2026, at any time and from time to time, the Series B Preferred Stock will be redeemable in whole or in part, at the Company's option, at a cash redemption price of $25.00 per share, plus an amount equal to all dividends accrued and unpaid (whether or not authorized or declared), if any, to, but not including, the redemption date.

In addition, upon the occurrence of a Delisting Event or a Change of Control (each as defined in the Articles Supplementary), the Company may, subject to certain conditions, at its option, redeem the Series B Preferred Stock, in whole or in part, after the first date on which the Delisting Event occurred or within 120 days after the first date on which the Change of Control occurred, as applicable, by paying the liquidation preference of $25.00 per share, plus an amount equal to all dividends accrued and unpaid (whether or not authorized or declared), if any, to, but not including, the redemption date. Upon the occurrence of a Change of Control during a continuing Delisting Event, unless the Company has elected to exercise its redemption right, holders of the Series B Preferred Stock will have certain rights to convert Series B Preferred Stock into shares of Company's common stock, $0.01 par value per share ("Common Stock"). In addition, upon the occurrence of a Delisting Event, the dividend rate will be increased on the day after the occurrence of the Delisting Event by 2.00% per annum to the rate of 9.125% of the $25.00 liquidation preference per share per annum (equivalent to $2.28125 per share each year) from and after the date of the Delisting Event. Following the cure of such Delisting Event, the dividend rate will revert to the rate of 7.125% of the $25.00 liquidation preference per share per annum.

The Series B Preferred Stock ranks on parity with the Company's 7.375% Series A Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value per share, and senior to Common Stock, with respect to dividend rights and rights upon the Company's voluntary or involuntary liquidation, dissolution or winding up.

Voting rights for holders of Series B Preferred Stock exist primarily with respect to the ability to elect two additional directors to the board of directors if six or more quarterly dividends (whether or not authorized or declared or consecutive) payable on the Series B Preferred Stock are in arrears, and with respect to voting on amendments to the Company's charter (which includes the Articles Supplementary) that materially and adversely affect the rights of the Series B Preferred Stock or create additional classes or series of shares of the Company's capital stock that are senior to the Series B Preferred Stock. Other than the limited circumstances described above and in the Articles Supplementary, holders of Series B Preferred Stock do not have any voting rights.

The foregoing description does not purport to be a complete description and is qualified in its entirety by reference to the Articles Supplementary, which is filed herewith as Exhibit 3.1 and incorporated by reference into this Item 3.03.

Item 5.03. Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.

The information about the Articles Supplementary set forth under Item 3.03 of this Current Report on Form 8-K is hereby incorporated by reference into this Item 5.03.

Item 7.01. Regulation FD Disclosure.



Press Releases

On September 29, 2021 the Company issued a press release announcing the launch of the offering.

On October 1, 2021 the Company issued a press release announcing the pricing of the offering.

Copies of these press releases are attached as Exhibits 99.1 and 99.2, and are hereby incorporated by reference into this Item 7.01. These press releases shall not be deemed "filed" for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that Section. The information in Item 7.01, including Exhibits 99.1 and 99.2 shall not be deemed incorporated by reference into any filing under the Exchange Act or the Securities Act, regardless of any general incorporation language in such filing.



Forward-Looking Statements


The statements in this Current Report on Form 8-K include statements regarding the intent, belief or current expectations of the Company and members of its management team, as well as the assumptions on which such statements are based, and generally are identified by the use of words such as "may," "will," "seeks," "strives," "anticipates," "believes," "estimates," "expects," "plans," "intends," "should" or similar expressions. Actual results may differ materially from those contemplated by such forward-looking statements, including as a result of those factors set forth in the Risk Factors section of the Company's Annual Report on Form 10-K for the year ended December 31, 2020 filed on March 30, 2021 and all other filings with the Securities and Exchange Commission after that date. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, or revise forward-looking unless required by law.

Item 9.01. Financial Statements and Exhibits.



(d) Exhibits



Exhibit No.   Description
  1.1           Underwriting Agreement, dated October 1, 2021, by and among
              Healthcare Trust, Inc., Healthcare Trust Operating Partnership, L.P.
              and B. Riley Securities, Inc., as representative of the underwriters
              listed on Schedule I thereto.
  3.1           Articles Supplementary relating to the designation of shares of
              7.125% Series B Cumulative Redeemable Perpetual Preferred Stock, dated
              October 4, 2021 (incorporated by reference to Exhibit 3.8 of the
              Company's registration statement on Form 8-A filed with the SEC on
              October 4, 2021).
  4.1           Sixth Amendment, dated October 4, 2021, to the Agreement of Limited
              Partnership of Healthcare Trust Operating Partnership, L.P., dated
              February 14, 2013.
  99.1          Launch Press Release, dated September 29, 2021.
  99.2          Pricing Press Release, dated October 1, 2021.
104           Cover Page Interactive Data File - the cover page XBRL tags are
              embedded within the Inline XBRL document.

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