Milwaukee-based health care real estate investment trust Physicians Realty Trust has announced a public offering of 9 million common shares at $14 per share, for net proceeds of about $126.3 million.
The company also gave underwriters the option to purchase another 1.35 million common shares. The shares will trade on the New York Stock Exchange under DOC.
The proceeds of the offering will be used to purchase common units in the company’s operating partnership, repay borrowings under the company’s senior secured revolving credit facility, and for general working capital and corporate needs. The funds may be used for future acquisitions or development.
Physicians Realty Trust also announced a proposed new $300 million senior unsecured revolving credit facility to replace its existing $200 million secured revolving credit facility.
And the company has also made two acquisitions totaling $20.7 million. The acquisition are expected to yield about 7.5 percent in unlevered cash in the first year of ownership.
The acquisitions included a 15,662-square-foot surgery center in Mansfield, Texas for $8.5 million and the 32,096-square-foot Eye Center of Southern Indiana in Bloomington, Ind., for $12.2 million.
PRT also announced it has about $180 million in pending acquisitions across the country.
“Our relationships continue to introduce us to a number of investment opportunities,” said John Sweet, executive vice president and chief investment officer at PRT. “We are excited that all of the hard work and travel during this past summer to meet with physicians and tour facilities for possible investments has produced this number of acquisition opportunities. Assuming all pending acquisitions announced today close, we will have completed more than $473 million in high quality health care real estate investments so far in 2014.”
