Healthcare Trust Prices Public Offering of 7.375% Series A Cumulative Redeemable Perpetual Preferred Stock

Rhea-AI Summary

Healthcare Trust, Inc. (HTI) has announced a public offering of 2.2 million shares of 7.375% Series A Cumulative Redeemable Perpetual Preferred Stock at $25.00 per share. An additional 330,000 shares may be purchased by underwriters. The offering is expected to generate approximately $53.3 million in net proceeds, set to close around May 11, 2021. Funds will be utilized to repay the company's revolving credit facility, allowing for further corporate purposes.

Positive

• Expected net proceeds of approximately $53.3 million will enhance liquidity.
• Proceeds will be used to repay existing debt, improving financial stability.

Negative

• Public offering may dilute existing shareholders' ownership.
• Market reaction could be negative if proceeds do not significantly benefit growth.

NEW YORK, May 6, 2021 /PRNewswire/ -- Healthcare Trust, Inc. ("HTI" or the "Company") today announced the pricing of an underwritten public offering of 2,200,000 shares of its 7.375% Series A Cumulative Redeemable Perpetual Preferred Stock (the "Series A Preferred Stock") at a public offering price of $25.00 per share. In addition, the Company granted the underwriters a 30-day option to purchase up to an additional 330,000 shares of Series A Preferred Stock. Series A Preferred Stock is listed on The Nasdaq Global Market under the symbol "HTIA." The Series A Preferred Stock has a $25.00 liquidation preference per share.

The Company expects to receive net proceeds from the offering, after deducting the underwriting discount but not other estimated offering expenses payable by the Company (including a structuring fee), of approximately $53.3 million and expects to close the transaction on or about May 11, 2021. The Company will use the net proceeds from this offering to repay amounts outstanding under its revolving credit facility as required thereunder. Subject to the terms and conditions set forth in the revolving credit facility, the Company may then draw on the revolving credit facility to borrow any amounts so repaid for general corporate purposes, including purchases of additional properties.

The bookrunners for the offering are B. Riley Securities, National Securities Corporation, Janney Montgomery Scott, Ladenburg Thalmann and William Blair. The co-managers for the offering are Aegis Capital Corp., Boenning & Scattergood, Colliers Securities LLC and Wedbush Securities Inc.

The Series A Preferred Stock was offered pursuant to a preliminary prospectus forming part of the registration statement which was declared effective by the Securities and Exchange Commission (the "Commission") on May 6, 2021.

About Healthcare Trust, Inc.

Healthcare Trust, Inc. is a publicly registered real estate investment trust focused on acquiring a diversified portfolio of healthcare real estate, with an emphasis on seniors housing and medical office buildings, located in the United States. Additional information about HTI can be found on its website at www.healthcaretrustinc.com.

Important Notice

This communication shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction. The offering of securities is made only by means of a prospectus. Copies of the final prospectus relating to these securities, when available, may be obtained from B. Riley Securities, Inc. You should direct any requests to B. Riley Securities, Inc., Attention: Prospectus Department, 1300 17th Street North, Suite 1300, Arlington, Virginia 22209, by telephone at (703) 312-9580 or by email at prospectuses@brileyfin.com. You may also obtain a copy of the final prospectus, when available, and other documents the Company has filed with the Commission for free by visiting the Commission's website at http://www.sec.gov.

The statements in this press release that are not historical facts may be forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause the outcome to be materially different. In addition, words such as "may," "will," "seeks," "anticipates," "believes," "estimates," "expects," "plans," "intends," "should" or similar expressions indicate a forward-looking statement, although not all forward-looking statements include these words. Actual results may differ materially from those contemplated by such forward-looking statements, including those set forth in the Risk Factors section of HTI's registration statement on Form S-11 and other reports filed with the Commission. Further, forward-looking statements speak only as of the date they are made, and HTI undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law.

Contact

Investors and Media:
Email: investorrelations@ar-global.com
Phone: (866) 902-0063

 

View original content to download multimedia:http://www.prnewswire.com/news-releases/healthcare-trust-prices-public-offering-of-7-375-series-a-cumulative-redeemable-perpetual-preferred-stock-301286250.html

SOURCE Healthcare Trust, Inc.

FAQ

What is the purpose of the offering by Healthcare Trust, Inc. (HTIA)?

The offering aims to raise funds to repay amounts outstanding under its revolving credit facility.

When is the closing date for the Healthcare Trust, Inc. stock offering?

The transaction is expected to close on or about May 11, 2021.

How many shares are being offered by Healthcare Trust, Inc. (HTIA)?

Healthcare Trust, Inc. is offering 2.2 million shares, with an option for underwriters to purchase an additional 330,000 shares.

What is the pricing for the Series A Preferred Stock offered by HTIA?

The Series A Preferred Stock is priced at $25.00 per share.

What will the proceeds from the HTIA stock offering be used for?

The proceeds will be primarily used to repay the company's revolving credit facility, allowing for further borrowing for general corporate purposes.