Ventas (VTR) said Thursday it priced a $677 million underwritten public offering of 10.6 million shares related to a forward sale deal with Wells Fargo Bank.
The offering, slated to close on Nov. 15, allows the underwriter a 30-day option to purchase an additional 1.59 million shares, Ventas said.
The company said it has entered into a forward sale agreement with Wells Fargo Bank to sell 10.6 million shares through Wells Fargo, which will borrow and deliver these shares for sale on the company's behalf.
Ventas said it expects to settle this agreement within a year by physically delivering the shares to receive the proceeds but has the option to settle in cash or through net share settlement. If Wells Fargo cannot borrow all the shares, Ventas will issue the remaining shares directly to the underwriter, reducing the forward sale amount accordingly, the company added.
Ventas said it intends to use the eventual proceeds for general corporate purposes, including acquisitions, investments, and debt repayment.
Shares of Ventas were down 1.6% in recent Thursday trading.
Price: 63.43, Change: -1.02, Percent Change: -1.58
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