Sun Healthcare prices offering of 26.7 M shares
Health care facility operator Sun Healthcare Group Inc. said Friday it priced an underwritten public offering of 26.7 million shares at $7.75 per share.
The offering is expected to close Aug. 18. The company gave underwriters a 30-day option to buy up to 4 million additional shares of its stock to cover overallotments.
Sun expects net proceeds, after discounts and expenses, of about $195.3 million, or $224.8 million if the overallotment option is exercised in full.
The company will use proceeds to repay some of the outstanding term loans under its existing credit facility.
Jefferies & Co., Credit Suisse Securities and JP Morgan Securities are joint bookrunning managers for the offering.
Sun Healthcare shares rose 5 cents to $8.04 in morning trading.