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Emeritus 5M-share offering priced at $18.25 each

Tue, 11/09/2010 - 9:45am
The Associated Press

Emeritus Corp. said Tuesday an underwritten public offering of 5 million of its shares was priced at $18.25 each.

The company plans to sell 4 million shares, while shareholders will sell 1 million shares. Emeritus will not receive any proceeds from the sale of shares by shareholders.

Emeritus has granted the underwriters a 30-day option to buy up to an additional 750,000 shares to cover excess demand.

The provider of assisted-living communities plans to use the net proceeds from the stock sale to pay the $13 million cash portion of its cost for acquiring the assets of Randall Weston and Weston Group Inc., and to pay back $14.2 million of the outstanding principal on two loans owed to Ventas Realty LP., and to cover other general corporate costs.

BofA Merrill Lynch is the manager for the offering, which is expected to close on Monday.

Emeritus shares fell $1.10, or 5.6 percent, to $18.55 in afternoon trading.

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