Update: Newcastle to Sell 40 Million Shares for More Senior Housing Acquisitions

Newcastle Investment Corp. (NYSE:NCT) priced its public offering of 40 million shares of its common stock for gross proceeds of about $176 million, the company announced Wednesday.

On Tuesday Newcastle said it plans to acquire more senior housing through the sale of the real estate investment trust’s common stock shares.

Newcastle’s latest move comes on the heels of a string of investment expansion in the sector, including the spinoff of its senior housing portfolio into a separate REIT.


In May, the real estate investment trust (REIT) said it planned to bet big in the senior housing space with a $319 million acquisition pipeline.

In June, the company announced plans to spin off its senior housing business to create a new publicly-traded REIT focused specifically on the sector, under the name New Senior Investment Group Inc. (NYSE:SNR). That same month, Newcastle acquired a six-property CCRC portfolio for $186 million.

The company continues to ramp up its participation in the senior housing sector.


“[For] our new senior business, which we’re in registration now at the SEC, $700 million of capital [has been] deployed,” said Chairman Wes Edens during a conference call last week. “[It’s] been a very robust quarter for us. We invested $199 million in senior housing properties [in the second quarter].”

Newcastle shares closed at $4.48 per share on Tuesday.

Citigroup, BofA Merrill Lynch and Credit Suisse Securities (USA) LLC are the joint book-running managers for the latest offering.

In connection with the offering, Newcastle intends to grant the underwriters an option for 30 days to purchase up to an additional 6 million shares of common stock, which is subject to adjustment.

Written by Cassandra Dowell

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