Kindred Healthcare shares recorded heavy volume Thursday as the company priced two public offerings that will help fund its takeover of Gentiva Health Services.
Kindred's offer values Gentiva at about $720 million, or $19.50 per share. The total deal will reach $1.8 billion, including the assumption of Gentiva's debt.
The Louisville, Ky.-based post-acute care provider will pay $14.50 per share in cash and $5 per share in common stock (offered at a fixed exchange ratio of 0.257 Kindred shares.)
Kindred on Monday launched a public offering of 5 million shares of common stock, which priced Thursday at $19.75 per share. The company also priced a separate offering of 150,000 tangible equity units, each with a stated amount of $1,000.
Each unit has a prepaid stock purchase contract that is scheduled to settle on Dec. 1, 2017 for between 43.0918 and 50.6329 shares of Kindred's common stock. It also includes a share of mandatory redeemable preferred stock with an initial liquidation preference of $201.58 and quarterly preferred stock installment payments at an annual rate of 7.5%.
Kindred shares gained 5.3% to close at $20.80.
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