Health Care REIT to Float New Stock Issue
Health Care REIT is preparing to expand its capital base. The company announced it will issue 20 million shares of its common stock in an underwritten public flotation. The price has been pegged at $73.50 per share. Additionally, the underwriters will be granted a 30-day purchase option for up to an additional 3 million shares.
Health Care REIT estimates it could reap gross proceeds of roughly $1.5 billion from the issue, or $1.7 billion, if the underwriters' option is fully exercised. The firm said it plans to use the monies for debt retirement, investments, and "general corporate purposes."
UBS, Barclays, JPMorgan Chase's near-eponymous J.P. Morgan, Royal Bank of Canada's Capital Markets arm, and the Securities wings of Wells Fargo and Deutsche Bank are the joint book-running managers of the issue.
The article Health Care REIT to Float New Stock Issue originally appeared on Fool.com.Fool contributor Eric Volkman has no position in any stocks mentioned. The Motley Fool recommends Health Care REIT and Wells Fargo. It owns shares of JPMorgan Chase and Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.