trending Market Intelligence /marketintelligence/en/news-insights/trending/cBr3NATXrVRvHX29BO3IMw2 content esgSubNav
In This List

Mainstreet Health Investments issues preferred shares for US$54M

Video

S&P Capital IQ Pro | Powering Your Edge

Video

S&P Capital IQ Pro | Unrivaled Sector Coverage

S&P Capital IQ Pro | Powered by Expert Insights

Blog

Enterprises are missing out on 24B by not optimizing cloud spending not going multicloud


Mainstreet Health Investments issues preferred shares for US$54M

Mainstreet Health Investments entered into subscription agreements with certain Magnetar Financial LLC-managed funds for the company's issuance of class A convertible preferred shares for gross proceeds of US$54 million.

The first tranche of the offering, consisting of 2,802,009 preferred shares offered at US$9.75 per share, subject to a 3% discount, closed Dec. 22 for gross proceeds of US$26.5 million. The second tranche of the investment is expected to close in the first quarter of 2018, subject to shareholder approval and other customary conditions.

Proceeds from the offering will be used to repay debt, to fund roughly US$5.0 million of a proposed acquisition of three memory care communities and to fund future acquisitions, as well as for working capital purposes.

The company agreed to acquire the freestanding communities, located in submarkets of Dallas, for US$21.5 million, with the balance of the transaction to be funded through new debt and cash on hand.

Upon closing, the properties will be master-net-leased to Constant Care Management Co. with a 15-year term, and as part of the transaction, Mainstreet Health will have the right to fund the next three facilities that Constant Care develops, with an option to acquire the facilities upon completion.