Does anyone else besides me remember that just about a week ago on the teleconference call, Jay said HCP would not raise equity capital just to pay down debt, that if they did a secondary equity offering it would be linked to a specific purpose, such as property deal? So there must be a deal that they anticipate making, or he is going back on his word. Only time will tell which one it is.
I disagree that it devalues the company over time. It depends what they do with the money doesnt it? If they find a tremendous value that they can take advantage of becasue they have the moeny to invest, it would do the opposite. Also don't forget that refinancing the debt at lower levels strengthens the balance sheet immediately and the company as a whole.