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PACS Group, Inc. Announces Closing of Its Upsized Public Offering and Full Exercise of the Underwriters’ Option to Purchase Additional Shares from the Selling Stockholders

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PACS Group, Inc. (NYSE: PACS) has successfully closed its upsized public offering, selling a total of 19,034,482 shares of common stock at $36.25 per share. The offering included 2,777,778 shares sold by the company and 16,256,704 shares sold by selling stockholders. The underwriters fully exercised their option to purchase an additional 2,482,758 shares from the selling stockholders. The gross proceeds amounted to approximately $101 million for PACS and $589 million for the selling stockholders. Citigroup, J.P. Morgan, and Truist Securities led the offering as book-running managers, with several other firms participating. The offering was made through a prospectus filed with the SEC.

PACS Group, Inc. (NYSE: PACS) ha concluso con successo la sua offerta pubblica ampliata, vendendo un totale di 19.034.482 azioni ordinarie a 36,25 dollari per azione. L'offerta includeva 2.777.778 azioni vendute dalla società e 16.256.704 azioni vendute da azionisti venditori. Gli underwriter hanno esercitato completamente la loro opzione di acquistare ulteriori 2.482.758 azioni dagli azionisti venditori. I proventi lordi ammontano a circa 101 milioni di dollari per PACS e 589 milioni di dollari per gli azionisti venditori. Citigroup, J.P. Morgan e Truist Securities hanno guidato l'offerta come manager di book-running, con la partecipazione di altre numerose aziende. L'offerta è stata effettuata tramite un prospetto depositato presso la SEC.

PACS Group, Inc. (NYSE: PACS) ha cerrado con éxito su oferta pública ampliada, vendiendo un total de 19,034,482 acciones ordinarias a 36.25 dólares por acción. La oferta incluyó 2,777,778 acciones vendidas por la empresa y 16,256,704 acciones vendidas por accionistas vendedores. Los intermediarios ejercieron completamente su opción de compra de 2,482,758 acciones adicionales de los accionistas vendedores. Los ingresos brutos ascendieron a aproximadamente 101 millones de dólares para PACS y 589 millones de dólares para los accionistas vendedores. Citigroup, J.P. Morgan y Truist Securities lideraron la oferta como gestores de libro, con la participación de varias otras firmas. La oferta se realizó a través de un prospecto presentado ante la SEC.

PACS Group, Inc. (NYSE: PACS)는 성공적으로 공모를 확대하여 총 19,034,482주의 보통주를 주당 36.25달러에 판매했습니다. 이 공모에는 2,777,778주가 회사에 의해 판매되었고, 16,256,704주가 판매 주주에 의해 판매되었습니다. 인수인은 판매 주주로부터 추가로 2,482,758주를 구매할 수 있는 옵션을 전부 행사했습니다. 총 수익은 PACS에 대해 약 1억 1백만 달러 및 판매 주주에 대해 5억 8천9백만 달러에 달합니다. Citigroup, J.P. Morgan, 그리고 Truist Securities는 북런닝 매니저로서 이 공모를 주도했으며, 여러 다른 기업들도 참여했습니다. 이 공모는 SEC에 제출된 투자설명서를 통해 이루어졌습니다.

PACS Group, Inc. (NYSE: PACS) a réussi à conclure son offre publique élargie, vendant un total de 19 034 482 actions ordinaires à 36,25 dollars par action. L'offre comprenait 2 777 778 actions vendues par la société et 16 256 704 actions vendues par des actionnaires vendeurs. Les souscripteurs ont pleinement exercé leur option d'acheter 2 482 758 actions supplémentaires auprès des actionnaires vendeurs. Les produits bruts se sont élevés à environ 101 millions de dollars pour PACS et 589 millions de dollars pour les actionnaires vendeurs. Citigroup, J.P. Morgan et Truist Securities ont dirigé l'offre en tant que gestionnaires de livre, avec la participation de plusieurs autres entreprises. L'offre a été réalisée par le biais d'un prospectus déposé auprès de la SEC.

PACS Group, Inc. (NYSE: PACS) hat erfolgreich sein vergrößertes öffentliches Angebot abgeschlossen und insgesamt 19.034.482 Stammaktien zu je 36,25 US-Dollar verkauft. Das Angebot umfasste 2.777.778 Aktien, die von der Gesellschaft verkauft wurden, und 16.256.704 Aktien, die von verkaufenden Aktionären verkauft wurden. Die Underwriter haben ihre Option, weitere 2.482.758 Aktien von den verkaufenden Aktionären zu kaufen, vollständig ausgeübt. Der Bruttoerlös betrug ungefähr 101 Millionen US-Dollar für PACS und 589 Millionen US-Dollar für die verkaufenden Aktionäre. Citigroup, J.P. Morgan und Truist Securities führten das Angebot als Book-Running-Manager, wobei mehrere andere Unternehmen teilnahmen. Das Angebot wurde durch ein bei der SEC eingereichtes Prospekt realisiert.

Positive
  • Successful closing of upsized public offering
  • Gross proceeds of approximately $101 million for the company
  • Full exercise of underwriters' option to purchase additional shares
  • Strong participation from multiple leading financial institutions as book-running managers
Negative
  • Potential dilution of existing shareholders due to new share issuance
  • Company did not receive proceeds from the sale of shares by selling stockholders

Insights

PACS Group's upsized public offering marks a significant capital raise, with total gross proceeds of approximately $690 million. The company's direct benefit is to $101 million, as the majority of shares were sold by existing stockholders. This suggests a potential shift in ownership structure and could indicate insiders cashing out. The pricing at $36.25 per share and full exercise of the underwriters' option demonstrate strong market demand. However, the substantial insider selling might raise questions about long-term growth prospects. Investors should closely monitor how PACS utilizes its $101 million proceeds and watch for any changes in insider ownership patterns post-offering.

The successful completion of PACS Group's upsized offering, including the full exercise of the underwriters' option, signals robust investor interest in the company. The involvement of major underwriters like Citigroup, J.P. Morgan and Truist Securities lends credibility to the offering. The significant participation of selling stockholders, accounting for 85.4% of the total shares sold, could be interpreted as a vote of confidence in the current valuation or as a desire to diversify holdings. For retail investors, this large-scale offering might increase liquidity in PACS stock, potentially leading to reduced volatility. However, the substantial insider selling could also be seen as a cautionary signal, warranting careful analysis of the company's future growth prospects and market position.

FARMINGTON, Utah--(BUSINESS WIRE)-- PACS Group, Inc. (NYSE: PACS) (“PACS” or the “Company”) today announced the closing of its upsized underwritten public offering of 19,034,482 shares of its common stock, which includes (i) 2,777,778 shares of its common stock sold by the Company and (ii) 16,256,704 shares of common stock sold by certain selling stockholders, which includes the exercise in full by the underwriters of their 30-day option to purchase an additional 2,482,758 shares of common stock from the selling stockholders, at a public offering price of $36.25 per share, for total gross proceeds of approximately $101 million to the Company and approximately $589 million to the selling stockholders, before deducting underwriting discounts and commissions and offering expenses. PACS did not receive any proceeds from any sale of shares by the selling stockholders.

Citigroup, J.P. Morgan and Truist Securities acted as lead book-running managers for the offering. RBC Capital Markets, Goldman Sachs & Co. LLC and UBS Investment Bank acted as joint book-running managers. Stephens Inc. and Oppenheimer & Co. acted as co-managers.

A registration statement on Form S-1 relating to the securities being sold in this offering (including the accompanying prospectus) has been filed with and was declared effective by the U.S. Securities and Exchange Commission (the “SEC”), and is available on the SEC’s website located at www.sec.gov. This offering was made only by means of a prospectus. Copies of the final prospectus relating to the offering may be obtained from: Citigroup Global Markets Inc. at 388 Greenwich Street, New York, New York 10013, Attention: General Counsel, facsimile number: +1 (646) 291-1469; J.P. Morgan Securities LLC at 383 Madison Avenue, New York, New York 10179, Attention: Equity Syndicate Desk, facsimile number: +1 (212) 622-8358; and Truist Securities, Inc. at 3333 Peachtree Road NE, 11th Floor, Atlanta, GA 30326, Attention: Equity Capital Markets, facsimile number: (404) 816-8535.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About PACS Group, Inc.

PACS is a holding company investing in post-acute healthcare facilities, professionals, and ancillary services. Founded in 2013, PACS is one of the largest post-acute platforms in the United States. Its independent subsidiaries operate 276 post-acute care facilities across 15 states serving up to 29,000 patients daily.

Brooks Stevenson, VP Corporate Communications

(801) 597-9538 | Brooks.Stevenson@pacs.com

Source: PACS Group, Inc.

FAQ

How many shares did PACS Group (PACS) sell in its public offering?

PACS Group (PACS) sold 2,777,778 shares of its common stock in the public offering.

What was the price per share in PACS Group's (PACS) public offering?

The public offering price was $36.25 per share of PACS Group (PACS) common stock.

How much did PACS Group (PACS) raise in gross proceeds from the offering?

PACS Group (PACS) raised approximately $101 million in gross proceeds from the offering.

Did the underwriters exercise their option to purchase additional shares of PACS Group (PACS)?

Yes, the underwriters fully exercised their 30-day option to purchase an additional 2,482,758 shares from the selling stockholders.

PACS Group, Inc.

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2.36B
43.01M
72.29%
34.65%
1.98%
Medical Care Facilities
Services-skilled Nursing Care Facilities
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United States of America
FARMINGTON