Health Care REIT Inc.
) garnered around $1.0 billion in proceeds from a public offering
to strengthen its liquidity position. Notably, based on the reaped
amount, this is the largest overnight-marketed SEC registered share
offering in 2014 by any company, to date.
In particular, the company offered 16.1 million shares at $62.35
each, which includes 2.1 million shares sold upon exercising the
underwriters' right to purchase additional stocks. Health Care REIT
expects to use the generated proceeds from this offering to pay off
advances under its main unsecured credit facility as well as meet
investment needs in health care and seniors housing assets.
A consortium of financial institutions such as -
JPMorgan Chase & Co.
The Goldman Sachs Group, Inc.
) - assisted the company in this public offering.
For Health Care REIT, whose cash and cash equivalents stand at
$185.9 million as of Mar 31, 2014, the payment of debt is
encouraging, as it would reduce interest expenses. However, the
shares dilution effect of this offering cannot be avoided.
Nevertheless, strategic investments will help Health Care REIT to
enhance its portfolio quality, which in turn will boost its
top-line growth going forward.
In view of this, Health Care REIT recently stated its projected
acquisition pipeline of around $414 million of seniors housing and
medical office assets for second-quarter 2014. This was based on
the acquisition completions and deals inked so far. The move was
aimed at strengthening the company's focus on
high-barriers-to-entry affluent markets around the world.
Health Care REIT currently carries a Zacks Rank #3 (Hold).
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