Healthcare Realty Trust has signed agreements with investment houses RBC Capital Markets, Cantor Fitzgerald, Merrill Lynch and Scotia Capital to sell up to 9 million shares. If successful, the offering could bring Nashville-based Healthcare Realty more than $245 million based on recent stock prices.
The company’s plan comes as its shares (Ticker: HR) are trading at their highest point in four and a half years. They’ve risen almost 20 percent so far in 2013, perhaps getting a lift from the optimism about the effects of health care reform that has lifted hospital stocks.
If all 9 million shares are sold, Healthcare Realty’s share count will rise by about 10 percent. Company execs say they plan to use the proceeds of the offering to fund, buy and/or develop medical facilities. In the meantime, they plan to pay down their unsecured credit facility, which matures in the spring of 2017 and has a balance of $150 million.
In turn, RBC, Cantor, Merrill and Scotia will be paid up to 2 percent of the value of the shares they sell to investors.