Senior Housing Properties Trust (
- a real estate investment trust (REIT) - has priced public
offering of 10 million common shares at $23.80 per share. The
underwriters have been granted a 30-day option to purchase up to
1.5 million additional shares. The offering is scheduled to close
on Jan 28, 2013.
The move comes as part of the company's effort to generate cash
to repay debt and utilize for general corporate purposes.
Particularly, Senior Housing plans to use the proceeds from this
public offering to pay down all or part of its outstanding
borrowings under its existing revolving credit facility and
facilitate further acquisitions.
The joint book-running managers for the common share offering
Jefferies Group Inc. (
Citigroup Inc. (
and Wells Fargo Securities - a division of
Wells Fargo & Company (
. BofA Merrill Lynch, Morgan Stanley, RBC Capital Markets and UBS
Investment Bank acted as the joint lead managers.
For Senior Housing, payback of debt is encouraging as it would
lessen interest expenses. Moreover, the use of funds for
strategic acquisitions would help the company enhance its
portfolio quality, which in turn could be accretive to its
earnings going forward.
Newton, Massachusetts-based Senior Housing has one of the most
diversified portfolios in the healthcare sector with exposure to
nearly all types of facilities. The company invests in hospitals,
nursing homes, senior apartments, independent living properties,
and assisted living properties. As of Sep 30, 2012, the company
owned 384 properties in 40 states and Wa.
Senior Housing currently holds a Zacks Rank #3 (Hold).
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