SNH Prices 10M Stock Offering - Analyst Blog
January 24 2013 - 9:00AM
Zacks
Senior Housing Properties
Trust (SNH) – 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 were
Jefferies Group Inc. (JEF),
Citigroup Inc. (C) and Wells
Fargo Securities – a division of Wells Fargo & Company
(WFC). 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).
CITIGROUP INC (C): Free Stock Analysis Report
JEFFERIES GP-NW (JEF): Free Stock Analysis Report
SENIOR HOUSING (SNH): Free Stock Analysis Report
WELLS FARGO-NEW (WFC): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Senior Housing Properties (NASDAQ:SNH)
Historical Stock Chart
From Jun 2024 to Jul 2024
Senior Housing Properties (NASDAQ:SNH)
Historical Stock Chart
From Jul 2023 to Jul 2024