Offering assists Health Care REIT

Published: Thursday, 9/18/2014

BY JON CHAVEZ BLADE BUSINESS WRITER

Toledos Health Care REIT Inc. said Wednesday that it has successfully completed a public offering of 17,825,000 shares that, after a sale price of $63.75 per share, raised $1.1 billion.

The company plans to use the money to repay its primary unsecured credit loans and possibly invest in more health care and seniors housing properties.

The sale included 2,325,000 shares sold to offerings underwriters. Goldman, Sachs & Co.; RBC Capital Markets, BofA Merrill Lynch, Citigroup, Deutsche Bank Securities, J.P. Morgan, and Morgan Stanley assisted Health Care REIT in the offering.

The Toledo law firm of Shumaker, Loop & Kendrick served as the sole lead counsel in the completion of the public offering.

Along with a common stock offering in May in which the company sold 16.1 million shares and reaped $1 billion, Health Care REIT has completed the two largest individual overnight marketed common stock offerings by any New York Stock Exchange-listed company thus far in 2014 based on total gross proceeds, the real estate investment trust said.

Zacks Equity Research said the public offering will reduce Health Care REITs interest expenses and strengthen its liquidity, allowing it to make more strategic investments and add to its portfolio.

But adding 17.8 million shares will dilute the companys share value, Zacks said. Health Care REIT already had 308.5 million shares outstanding.

In trading Wednesday, the companys stock fell 10 cents to close at $63.74 a share. The announcement was made after the market closed.

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Offering assists Health Care REIT

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