The Pennant Group Announces Public Offering of Common Stock
The Pennant Group (NASDAQ: PNTG) has announced a public offering of 3,500,000 shares of common stock. The company plans to grant underwriters a 30-day option to purchase up to 525,000 additional shares. Proceeds will be used to repay outstanding debt under the company's revolving credit facility, with any remaining funds allocated for general corporate purposes.
Citigroup and Truist Securities are lead book-running managers, while Wells Fargo Securities and RBC Capital Markets are joint book-running managers. Oppenheimer & Co. and Stephens Inc. are acting as co-managers. The offering is being made pursuant to the company's effective shelf registration statement filed with the SEC.
The Pennant Group (NASDAQ: PNTG) ha annunciato un offerta pubblica di 3.500.000 azioni di azioni ordinarie. L'azienda prevede di concedere ai collocatori un'opzione di acquisto di fino a 525.000 azioni aggiuntive per 30 giorni. I proventi saranno utilizzati per ripagare il debito residuo nell'ambito della linea di credito revolving dell'azienda, mentre eventuali fondi residui saranno destinati a scopi aziendali generali.
Citigroup e Truist Securities sono i principali gestori del libro, mentre Wells Fargo Securities e RBC Capital Markets sono gestori co-book. Oppenheimer & Co. e Stephens Inc. agiscono come co-manager. L'offerta è effettuata ai sensi della dichiarazione di registrazione shelf efficace dell'azienda depositata presso la SEC.
The Pennant Group (NASDAQ: PNTG) ha anunciado una oferta pública de 3,500,000 acciones de acciones ordinarias. La compañía planea otorgar a los suscriptores una opción de compra de hasta 525,000 acciones adicionales por 30 días. Los ingresos se utilizarán para pagar la deuda pendiente bajo la línea de crédito revolvente de la compañía, con cualquier fondo restante destinado a fines corporativos generales.
Citigroup y Truist Securities son los principales gerentes de libro, mientras que Wells Fargo Securities y RBC Capital Markets son co-gerentes de libro. Oppenheimer & Co. y Stephens Inc. actúan como co-gestores. La oferta se lleva a cabo de acuerdo con la declaración de registro de estantería efectiva de la compañía presentada ante la SEC.
펜넌트 그룹 (NASDAQ: PNTG)은 3,500,000주의 보통주에 대한 공개 매도를 발표했습니다. 회사는 인수인에게 525,000주 추가 구매에 대한 30일 옵션을 부여할 예정입니다. 수익금은 회사의 리볼빙 신용 시설에 대한 미지급 부채 상환에 사용될 예정이며, 남은 자금은 일반 기업 용도로 배정됩니다.
시티그룹과 트루이스트 증권이 주요 북런닝 관리자이며, 웰스 파고 증권과 RBC 캐피탈 마켓이 공동 북런닝 관리자입니다. 오펜하이머 & Co. 및 스티븐스 인크가 공동 관리자로 활동하고 있습니다. 이 공시는 SEC에 제출된 회사의 유효한 선등록 명세서에 따라 이루어집니다.
The Pennant Group (NASDAQ: PNTG) a annoncé une offre publique de 3 500 000 actions ordinaires. L'entreprise prévoit de donner aux souscripteurs une option d'achat de 525 000 actions supplémentaires pendant 30 jours. Les produits seront utilisés pour rembourser la dette en cours dans le cadre de la facilité de crédit revolving de l'entreprise, tout montant restant étant alloué à des fins d'entreprise générales.
Citigroup et Truist Securities sont les principaux gestionnaires de livre, tandis que Wells Fargo Securities et RBC Capital Markets en sont les co-gestionnaires. Oppenheimer & Co. et Stephens Inc. agissent en tant que co-gestionnaires. L'offre est faite conformément à la déclaration d'enregistrement de shelf effective de l'entreprise déposée auprès de la SEC.
Die Pennant Group (NASDAQ: PNTG) hat ein öffentliches Angebot von 3.500.000 Aktien ausgegeben. Das Unternehmen plant, den Underwritern eine 30-tägige Option zum Kauf von bis zu 525.000 zusätzlichen Aktien zu gewähren. Die Erlöse werden verwendet, um ausstehende Schulden aus dem revolvierenden Kreditrahmen des Unternehmens zurückzuzahlen, während alle verbleibenden Mittel für allgemeine Unternehmenszwecke vorgesehen sind.
Citigroup und Truist Securities sind die führenden Buch-Manager, während Wells Fargo Securities und RBC Capital Markets gemeinsame Buch-Manager sind. Oppenheimer & Co. und Stephens Inc. fungieren als Co-Manager. Das Angebot erfolgt gemäß der wirksamen Shelf-Registrierungserklärung des Unternehmens, die bei der SEC eingereicht wurde.
- Potential to reduce outstanding debt
- Additional capital for general corporate purposes
- Involvement of reputable financial institutions as underwriters
- Potential dilution of existing shareholders' equity
- Increase in outstanding shares may negatively impact stock price
Insights
The Pennant Group's announcement of a public offering of 3,500,000 shares of common stock is a significant move that could have substantial implications for the company's financial structure and future operations. This offering, with an additional 30-day option for underwriters to purchase up to 525,000 more shares, indicates a strategic decision to raise capital.
The primary purpose of this offering appears to be debt reduction, as the company plans to use the net proceeds to repay outstanding indebtedness under its revolving credit facility. This could potentially improve The Pennant Group's balance sheet by reducing its debt burden and associated interest expenses. However, it's important to note that this will also lead to dilution of existing shareholders' ownership.
The involvement of major financial institutions like Citigroup, Truist Securities, Wells Fargo Securities and RBC Capital Markets as book-running managers suggests confidence in the offering's potential success. This could be seen as a positive signal to the market about the company's prospects.
Investors should carefully consider the impact of this offering on the company's capital structure, potential dilution effects and how effectively management utilizes the raised capital for debt reduction and other corporate purposes. The market's reaction to this announcement will be important to watch in the short term.
The Pennant Group's decision to initiate a public offering comes at a time when the healthcare services sector is facing both challenges and opportunities. With a current market cap of
The timing of this offering is intriguing, as it may indicate management's perception of favorable market conditions or a strategic need for capital. The healthcare industry, particularly in the post-acute care and senior living segments where Pennant operates, is experiencing increased demand due to an aging population. This capital raise could position the company to capitalize on growth opportunities or navigate potential regulatory changes in the healthcare landscape.
However, investors should be mindful of the potential market saturation of Pennant's stock following this offering. The additional supply of shares could put downward pressure on the stock price in the short term. It will be important to monitor how the market absorbs this new issuance and whether it affects the company's valuation metrics.
The use of proceeds for debt repayment suggests a focus on strengthening the balance sheet, which could enhance Pennant's financial stability and potentially improve its credit profile. This may lead to more favorable borrowing terms in the future, supporting long-term growth strategies.
EAGLE, Idaho, Sept. 30, 2024 (GLOBE NEWSWIRE) -- The Pennant Group, Inc. (NASDAQ: PNTG) (the “Company”) today announced that it has commenced an underwritten public offering of 3,500,000 shares of common stock of the Company. The Company intends to grant the underwriters a 30-day option to purchase up to 525,000 additional shares of common stock. The Company expects to use the net proceeds from the offering to repay outstanding indebtedness under the Company’s revolving credit facility and any remaining for general corporate purposes.
Citigroup and Truist Securities are acting as the lead book-running managers for the offering. Wells Fargo Securities and RBC Capital Markets are acting as joint book-running managers. Oppenheimer & Co. and Stephens Inc. are acting as co-managers. The offering of the common stock is being made pursuant to the Company’s effective shelf registration statement filed with the Securities and Exchange Commission (the “SEC”). A preliminary prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC. When available, a copy of the preliminary prospectus supplement and accompanying prospectus relating to the offering may be obtained from: Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, or by telephone at (800) 831-9146; and Truist Securities, Inc., Attention: Prospectus Department, 3333 Peachtree Road NE, 9th Floor, Atlanta, GA 30326, by telephone at (800) 685-4786 or by email at TruistSecurities.prospectus@Truist.com.
This press release does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of these securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About The Pennant Group, Inc.
The Pennant Group, Inc. is a holding company of independent operating subsidiaries that provide healthcare services through 117 home health and hospice agencies and 54 senior living communities located throughout Arizona, California, Colorado, Idaho, Montana, Nevada, Oklahoma, Oregon, Texas, Utah, Washington, Wisconsin and Wyoming. Each of these businesses is operated by a separate, independent operating subsidiary that has its own management, employees and assets.
Forward-Looking Statements
This press release contains forward-looking statements that are based on management’s current expectations, assumptions and beliefs about its business, financial performance, operating results, the industry in which it operates and other future events, made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. No assurance can be given that the proposed offering discussed above will be completed on the terms described, or at all. Forward-looking statements can often be identified by words such as “anticipates,” “expects,” “intends,” “plans,” “predicts,” “believes,” “seeks,” “estimates,” “may,” “will,” “should,” “would,” “could,” “potential,” “continue,” “ongoing,” similar expressions, and variations or negatives of these words. These forward-looking statements include, but are not limited to, statements regarding future events, including the expected timing, completion and size of the offering and the anticipated use of the net proceeds from the offering. They are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause actual results to materially and adversely differ from those expressed in any forward-looking statement. These risks and uncertainties relate to fluctuations in the Company’s stock price, changes in market conditions, the final terms of the public offering and satisfaction of customary closing conditions related to the public offering, as well as the other factors discussed in the “Risk Factors” section in the preliminary prospectus supplement and registration statement referenced above and in the Company’s most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q, as well as other risks detailed in the Company’s filings with the SEC. All information in this press release is as of the date of the release and should not be relied upon as representing its views as of any subsequent date. Except as required by the federal securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changing circumstances or any other reason after the date of this press release.
Contact Information
Investor Relations
The Pennant Group, Inc.
(208) 506-6100
ir@pennantgroup.com
SOURCE: The Pennant Group, Inc.
FAQ
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