PhyMatrix Corp. raised $107 million in its initial public offering in January. The company sold 7.15 million shares, initially priced at $15 per share. Managers were Smith Barney, Dean Witter, PaineWebber and Robinson-Humphrey. The West Palm Beach, Fla., company, formerly Continuum Care Corp., develops disease-management networks by affiliating with specialty and primary-care physicians. The company supports its affiliated physicians with diagnostic and therapeutic services, medical malls and health parks.
National Health Investors said it is providing $5.9 million in mortgage, construction and permanent financing for a 120-bed nursing home in Ocoee, Fla. The nursing home is owned by American Medical Associates, Atlanta. The Murfreesboro, Tenn.-based real estate investment trust also is providing $1.5 million in mortgage financing to a 120-bed nursing home in Rockville, Md., managed by Greenbrier Healthcare Services, a subsidiary of Malvern, Pa.-based Iatros Health Network. NHI has investments in 233 healthcare facilities in 24 states.
Standard & Poor's Corp. raised its rating to A+ from AA- on Cleveland Clinic Foundation's $319.6 million of debt. The New York-based rating agency said the foundation is "strong financially" and "a linchpin" of the Cleveland Health Network, which includes four hospitals and seven physician-hospital organizations. In addition, the agency cited increasing utilization and strong management as reasons for the upgrade. Standard & Poor's also raised its rating for Spaulding Rehabilitation Hospital in Boston. Spaulding's upgrade to A+ from A on $7.1 million of debt results from an upgrade of Massachusetts General Hospital, also in Boston, to A+ from A. Spaulding's debt is guaranteed by Massachusetts General's obligated group.
John Goetz, a 10-year veteran of Moody's Investors Service, has joined Massachusetts Financial Services, a Boston-based mutual fund company, as a vice president and senior credit analyst for healthcare. Goetz, most recently vice president and assistant director of the healthcare finance ratings group at Moody's, also had served as the group's senior credit officer. Diana Lee, a vice president and supervisor in the healthcare ratings group, succeeded Goetz.
PhyCor earlier this month initiated a public offering of convertible debentures expected to raise $170 million. The Nashville, Tenn.-based physician practice management company will use proceeds to repay debt, finance future acquisitions, develop and manage independent practice associations, fund deferred purchase price obligations, provide working capital and support other general corporate purposes. The offering is being managed by Alex. Brown & Sons.
Nationwide Health Properties' board of directors has declared a two-for-one split of the real estate investment trust's common stock. The split will take the form of a stock dividend payable to shareholders on March 8. As a result, NHP's stock price will drop to the $20-per-share range. Mark Desmond, vice president and treasurer of Newport Beach, Calif.-based NHP, said the split is intended to attract more retail buyers. On a per-share basis, NHP has been one of the pricier healthcare REIT stocks, at about $42 a share. The board also decided to increase the company's dividend on an annual basis instead of quarterly. "An annual dividend increase is more in line with the vast majority of corporations and REITs," said R. Bruce Andrews, NHP's president and chief executive officer. NHP has investments in 210 healthcare facilities in 30 states.