American Healthcare REIT announced Monday the terms of its expected initial public offering (IPO), saying that it was aiming to raise up to $840 million.
The California-based real estate investment trust’s (REIT) primary operating partner is Louisville, Kentucky-based Trilogy Health Services, which is one of the nation’s largest skilled nursing and senior living providers.
The timing on the final closing and listing of American Healthcare’s IPO is still not determined, Alan Peterson, a spokesman for the company said in a statement to Skilled Nursing News.
The IPO of 56 million shares is expected to be listed on the New York Stock Exchange (NYSE) under the ticker symbol of AHR, with a price per share of $12 to $15, the company said in a press release.
The REIT intends to use the net proceeds of the proposed offering to repay around $703.8 million of the amount outstanding under its credit facility, assuming pricing at the midpoint of the IPO price range.
“The use of funds is stated that it would be to repay outstanding balances on our credit facility, which is liability,” Peterson said, adding, “The company is not providing additional comments outside of the press release and our public filings today.”
The company said that it might grant the underwriters a 30-day option to purchase up to an additional 8.4 million shares.
“[A]fter the use of the net proceeds from this offering to repay certain indebtedness, our aggregate borrowings represented approximately 38.4% of the combined market value of all of our real estate and other real estate-related investments,” as of Sept. 30, 2023, the company said in its latest SEC filing.
American Healthcare is a self-managed REIT that acquires, owns and operates a diversified portfolio of clinical healthcare real estate properties, focusing primarily on healthcare-related facilities, including skilled nursing facilities (SNFs), medical office buildings, senior housing and hospitals.
Last November, it entered into a purchase agreement to take full ownership of its subsidiary, Trilogy REIT Holdings, in which it had a majority stake.