Psychiatric Solutions, Franklin, Tenn., said it expects to raise about $170 million in a public offering of 3.5 million shares of common stock and the proceeds will top $190 million if the underwriters exercise options to purchase an additional 525,000 shares. The behavioral-health provider will use the money to buy new inpatient facilities and repay $55 million in revolving credit, according to a Securities and Exchange Commission filing. The company said in the filing that it is in the process of acquiring more freestanding psychiatric facilities but didn't specify the number of its planned acquisitions. The company also may use the proceeds to help repay a $325 million loan issued to help fund its July 1 purchase of 20 inpatient facilities from Ardent Health Services for $560 million. Psychiatric Solutions owns or leases 55 freestanding psychiatric inpatient facilities and manages 39 psychiatric units. It has about 22 million shares outstanding. -- by Joseph Mantone
Psychiatric chain plans offering to fund hospital deals
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