California-based real estate investment trust (REIT), American Healthcare, unveiled details of its upcoming initial public offering (IPO) on Monday, with a goal of raising up to $840 million. The REIT’s primary operating partner is Trilogy Health Services, a major skilled nursing and senior living provider headquartered in Louisville, Kentucky.
The final closing date and listing timing for American Healthcare’s IPO remain undetermined, as confirmed by Alan Peterson, the company’s spokesperson, in a statement to Skilled Nursing News.
The IPO is set to offer 56 million shares and is anticipated to be listed on the New York Stock Exchange (NYSE) under the ticker symbol AHR. The pricing per share is expected to fall within the range of $12 to $15, as outlined in the company’s press release.
Net proceeds from the offering are earmarked for repaying approximately $703.8 million of outstanding credit facility amounts, assuming the IPO price falls at the midpoint of the range.
“The use of funds is stated that it would be to repay outstanding balances on our credit facility, which is liability,” Peterson clarified. He added, “The company is not providing additional comments outside of the press release and our public filings today.”
American Healthcare has also mentioned the potential for granting underwriters a 30-day option to purchase an additional 8.4 million shares.
As of September 30, 2023, the company revealed in its latest SEC filing that, “[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.”
Specializing in clinical healthcare real estate properties, the self-managed REIT focuses on a diversified portfolio, including skilled nursing facilities (SNFs), medical office buildings, senior housing, and hospitals.
In a strategic move last November, American Healthcare entered into a purchase agreement to acquire full ownership of its subsidiary, Trilogy REIT Holdings, in which it previously held a majority stake.
