Senior Housing Properties Trust to Sell $6.5 Million Shares in Public Offering

Senior Housing Properties Trust (NYSE: SNH), a Real Estate Investment Trust (REIT) that owns assisted-living communities, nursing homes and rehabilitation hospitals said it would sell at least 6.5 million shares on Monday.

Proceeds would be used to reduce the amount due under the company’s revolving credit facility and for general business purposes, which could include funding acquisitions.  Senior Housing has about 142 million shares outstanding.

As of June 24, 2011, the company owns 341 properties located in 37 states and Washington, D.C. with a book value of $4.1 billion before depreciation.  According to the prospectus, ninety-four percent (94%) of its rents come from properties where a majority of the charges are paid from private resources.


The joint bookrunning managers for the offering are Jefferies & Company, Inc., Citi and UBS Investment Bank. The co-lead managers for the offering are Morgan Keegan, Morgan Stanley, RBC Capital Markets and Wells Fargo Securities.

In other SNH news, the company said last week that it entered into a new $750 million unsecured revolving credit facility, which can be increased to up to $1.5 billion in certain circumstances.

On Tuesday, the company said it plans 10 million common shares at a price to the public of $22.50 per share. The settlement of the offering is expected to occur on July 1, 2011.