Healthcare Realty Trust Incorporated (HR), a real estate investment trust, declared an underwritten public offering of 3,000,000 common shares to enhance its liquidity. The completion of the offering is subject to customary closing conditions.
The proceeds from this offering will be utilized to fund the acquisition of healthcare facilities and repayment of outstanding borrowings under its unsecured credit facility. Additionally, the proceeds would be used for other general business purposes.
The sole book-running manager for the offering is J.P.Morgan – a part of JPMorgan Chase & Co. (JPM).
Though the intention of repaying debt is encouraging as it will lessen the company’s interest expenses, the offering would result in share dilution for Healthcare Realty.
Earlier, in Sep 2012, Healthcare Realty declared an underwritten public offering of 8,000,000 common shares to enhance its liquidity. Additionally, the company decided to provide a 30-day option to the underwriters to purchase an additional 1.2 million shares.
Some other REITs that recently announced a public offering include Gladstone Commercial Corp. (GOOD) and Chatham Lodging Trust (CLDT). Gladstone declared an underwritten public offering of 1.1 million shares. The company also anticipates that the underwriters would be provided with a 30-day option to purchase up to an additional 165,000 common shares to cover any over-allotments.
On the other hand, Chatham declared a public offering of 4.5 million common shares of beneficial interest, with a par value of one cent per share. Further, to cover any over-allotments, the company furnished a 30-day option to underwriters to buy up to an additional 675,000 shares.
Healthcare Realty currently carries a Zacks Rank #3 (Hold).
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