American Healthcare REIT Announces Pricing of Upsized Primary Public Offering of Common Stock
Rhea-AI Summary
American Healthcare REIT (NYSE: AHR) has priced an upsized public offering of 17,400,000 shares of common stock at $23.55 per share. The company has granted underwriters a 30-day option to purchase up to an additional 2,610,000 shares. Net proceeds will be used to acquire the remaining 24% minority interest in Trilogy Holdings, and to repay debt on existing credit lines. The offering is expected to close on September 20, 2024. BofA Securities, Morgan Stanley, and KeyBanc Capital Markets are acting as joint book-running managers, with several other firms in supporting roles. The offering is being made pursuant to the company's effective shelf registration statement filed with the SEC.
Positive
- Upsized public offering of 17,400,000 shares at $23.55 per share
- Option for underwriters to purchase additional 2,610,000 shares
- Proceeds to be used for strategic acquisition and debt repayment
- Strong lineup of reputable financial institutions as underwriters
Negative
- Potential dilution of existing shareholders' equity
- Increased debt repayment may impact short-term financial flexibility
News Market Reaction – AHR
In the trading session that priced this news, AHR gained 3.59%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
The Company expects to use the net proceeds from the offering to exercise its option to purchase its joint venture partner's
BofA Securities, Morgan Stanley and KeyBanc Capital Markets are acting as the joint book-running managers of the offering. Citigroup, RBC Capital Markets, Truist Securities and Barclays are acting as the book-running managers of the offering. Citizens JMP, Fifth Third Securities, Regions Securities LLC and Credit Agricole CIB are acting as co-managers of the offering.
The offering of the common stock is being made pursuant to the Company's effective shelf registration statement filed with the Securities and Exchange Commission (the "SEC"). A prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC. When available, a copy of the prospectus supplement and accompanying prospectus relating to the offering may be obtained from BofA Securities, Inc., NC1-022-02-25, 201 North Tryon Street,
This press release does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of these securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About American Healthcare REIT, Inc.
American Healthcare REIT, Inc. is a self-managed REIT that acquires, owns and operates a diversified portfolio of clinical healthcare real estate properties, focusing primarily on outpatient medical buildings, senior housing, skilled nursing facilities and other healthcare-related facilities. Its properties are located in
Forward-Looking Statements
Certain statements contained in this press release may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends for all such forward-looking statements to be covered by the applicable safe harbor provisions for forward-looking statements contained in those acts. Such forward-looking statements generally can be identified by the use of forward-looking terminology, such as "may," "will," "can," "expect," "intend," "anticipate," "estimate," "believe," "continue," "possible," "initiatives," "focus," "seek," "objective," "goal," "strategy," "plan," "potential," "potentially," "preparing," "projected," "future," "long-term," "once," "should," "could," "would," "might," "uncertainty" or other similar words. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Any such forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which the Company operates, and beliefs of, and assumptions made by, the Company's management and involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied therein, including, without limitation, risks disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, and other periodic reports filed with the Securities and Exchange Commission. Except as required by law, the Company does not undertake any obligation to update or revise any forward-looking statements contained in this release.
Contact: | Alan Peterson |
VP, Investor Relations & Finance | |
(949) 270-9200 | |
investorrelations@ahcreit.com |
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SOURCE American Healthcare REIT, Inc.