Top Financial Stocks
Financial stocks were again well ahead of other sectors, with the NYSE Financial Sector Index increasing more than 1.3% while financial companies in the S&P 500 Index raced to a nearly 1.6% advance.
In company news, shares of the Global Medical REIT ( GMRE ) declined Wednesday, dropping almost 10% to a session low of $8.85 a share, after the real estate investment trust priced a public offering of 3.5 million of its common shares at $9 apiece, an 8.4% discount to Tuesday's closing price for the stock.
After first paying underwriter discounts and other offering expenses, the company plans to use the net proceeds from the deal to pay down debt owed through its revolving credit facility as well as for potential acquisitions.
Separately, Surgery Partners ( SGRY ) late Tuesday told Global Medical it will be able to guarantee only 52% of the rent payments from the recently acquired Cardiologists of Lubbock clinic building in Texas.
Global Medical acquired the heart-care clinic in Lubbock on June 5, and in a related move, also signed a new, 12-year, triple-net lease lease with the Lubbock Heart Hospital and Surgery Partners, which operates the cardiac clinic and was expected to guarantee the rent payments under a joint venture agreement with the hospital.
Since that time, however, Surgery Partners has warned Global Medical it will only be able to guarantee 52% of future rent payments due to legal restrictions limiting it to its ownership stake in the building prior to Global Medical's buyout earlier this month.
In other sector news,
(+) MBIA, (+4.2%) Authorizes new, $250 mln stock buyback program to replace the company's existing plan approved in February 2016 that has only $13 mln still available for share repurchases.
(-) EZPW, (-14.6%) Begins $125 private placement of convertible senior notes due 2024. Net proceeds will be used to repay debt owed under the company's senior secured credit facility. Also discloses a non-binding letter of intent to acquire various pawn shops in Latin America.
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