Target Healthcare REIT Ltd. is looking to raise as much as £100 million via the issuance of up to 92,592,592 ordinary shares priced at 108 pence apiece through an initial placing, open offer and offer for subscription.
The offer price represents a 6.1% discount to the company's 115 pence-per-share closing price as at Jan. 31 and a premium of 3.4% to its last reported EPRA NAV per ordinary share of 104.4 pence as at Dec. 31, 2017.
The open offer, comprising a total of 45,851,063 shares, involves 2 new shares for every 11 existing ordinary shares held by qualifying shareholders on Jan. 30.
Meanwhile, the offer for subscription is only being made in the U.K. and Jersey, but the company may issue and allot new shares through a private placement to applicants in other jurisdictions, subject to applicable law.
Proceeds from the offering, which is not underwritten, will be used to fund £20 million of existing capital commitments and £19 million worth of forward-funded purchases, on which the company is nearing a due diligence and are expected to be settled March 31 March.
Additionally, Target Healthcare REIT will use £61 million of funds for the property acquisitions expected to be completed by June 30, and for the repayment of some of its existing revolving credit facilities, according to a news release. The real estate investment trust is also in talks to buy a portfolio of care homes with an estimated value of roughly £62 million, subject to approval.
The initial placing will close Feb. 22 and the offer for subscription and open offer will close Feb. 20. Results of the initial issues will be made public Feb. 23, and the new shares are expected to be admitted and traded on the main board of the London Stock Exchange Feb. 27.
Stifel Nicolaus Europe Ltd. and Dickson Minto W.S. are acting as sponsors of the company.
