Health Care REIT has provided $26.9 million in financing to several borrowers. More than half-$14.1 million-went to a 180-bed skilled-nursing facility and a 60-bed assisted-living facility in Norwood, N.J. Another $2.85 million is secured by a 161-bed long-term-care facility in Westland, Mich. The Toledo, Ohio-based real estate investment trust also provided $3.5 million in operating-lease financing for three assisted-living facilities in North Carolina, which will be managed by Standish Care Co. in Boston. The REIT also will provide as much as $6.4 million in construction financing for a 100-bed skilled-nursing facility in St. Louis to be managed by an affiliate of Cleveland, Tenn.-based Life Care Centers of America.
Universal Health Services, a King of Prussia, Pa.-based chain of 26 hospitals, called for redemption of its 7.5% convertible subordinated debentures due April 1, 2008. Holders may convert their bonds into shares of Universal's common stock at a price of $23.53 or have the bonds redeemed for cash equal to the par value plus accrued interest from April 1 until the conversion date, April 8. If all of the bonds are converted into common stock, the hospital chain will issue 1.26 million new shares. And if all the bonds are converted, Universal executives expect to save $1.4 million in annual interest expenses after taxes.
Focal Surgery completed a private placement of 13.9 million shares of common stock at $1 per share. The Milpitas, Calif.-based company didn't disclose net proceeds. It was formed last September when ultrasound maker Diasonics split into three companies (Sept. 27, 1993, p. 66). The company is exploring the use of high-intensity ultrasound to non-invasively destroy diseased tissue. The technique now is being tested on men with enlarged prostates.
Sparta Surgical Corp. expects to raise $7.5 million in an initial public offering of 750,000 units. The units will include one share of preferred stock and an undetermined number of warrants to buy common stock. The Pleasanton, Calif.-based company filed a registration statement with the Securities and Exchange Commission late last month. Sparta makes microsurgical instruments, electrotherapy products and wound dressings. It will use net proceeds of the offering to repay debt, buy equipment, provide working capital and finance research and development.
Computer Marketplace, Corona, Calif., said last week that it has formed a subsidiary to sell new and used medical equipment. The subsidiary, Corona-based Medical Marketplace, will buy and sell ultrasound devices, electrocardiogram equipment, scanners and other medical equipment. Computer Marketplace distributes new and used computer equipment. Executives said the subsidiary should make it easier for the company to sell computer equipment to hospitals as well.