RehabCare Group, St. Louis, said it will seek $24 per share in a stock offering that will partially finance its $570 million purchase of Houston-based Triumph HealthCare, which operates long-term acute-care hospitals.
RehabCare stock offering to help finance deal
RehabCare hopes to sell 5.4 million shares, and the investment banks underwriting the share issue have a 30-day option to buy up to 810,000 additional shares. At $24 per share, 5.4 million shares would raise $129.6 million, and the additional shares would raise another $19.4 million. RehabCare said its remaining financing will come from a new senior credit facility and cash on hand.
RehabCare expects to complete the share sale on Nov. 18. The acquisition of Triumph is expected to close by Dec. 1.
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