Nov 9 2009
RehabCare Group, Inc. (NYSE: RHB) announced today it has commenced an underwritten public offering of 4,350,000 shares of its common stock pursuant to the Company’s shelf registration statement filed with the Securities and Exchange Commission (the “SEC”). The underwriters will have a 30-day option to purchase an additional 652,500 shares of common stock from the Company at the public offering price, less underwriting discounts and commissions, solely to cover over-allotments, if any.
The Company intends to use the net proceeds from the offering, together with borrowings under the Company’s new senior credit facilities and cash on hand, to pay the consideration of its acquisition of Triumph HealthCare and related fees and expenses. Any proceeds from the offering in excess of amounts needed to pay the acquisition consideration and related fees and expenses will be used for general corporate purposes. If the acquisition is not consummated, the Company expects to use the net proceeds of the offering for general corporate purposes.
BofA Merrill Lynch and J.P. Morgan Securities Inc. are serving as joint book-running managers for the offering, and Deutsche Bank Securities, RBC Capital Markets and Morgan Keegan & Company, Inc. are serving as co-managers.