Pennant Group Launches Public Offering of 3.5 Million Shares
- The Pennant Group, Inc. announced a public offering of 3,500,000 shares of common stock.
- The proceeds will primarily be used to repay outstanding debt and for general corporate purposes.
- The offering reflects the company's strategy to manage financial obligations and is subject to market risks.
On September 30, 2024, The Pennant Group, Inc., based in Eagle, Idaho, announced the commencement of an underwritten public offering of 3,500,000 shares of its common stock. The company plans to grant underwriters a 30-day option to purchase an additional 525,000 shares. The proceeds from this offering are intended to be used primarily for repaying outstanding debt under the company's revolving credit facility, with any remaining funds allocated for general corporate purposes. Citigroup and Truist Securities are leading the offering, with Wells Fargo Securities and RBC Capital Markets serving as joint book-running managers. Oppenheimer & Co. and Stephens Inc. are acting as co-managers. The offering is being conducted under the company's effective shelf registration statement filed with the SEC, and a preliminary prospectus supplement will be made available. This announcement is part of the company's strategy to manage its financial obligations and enhance its operational flexibility, reflecting its ongoing commitment to maintaining a strong balance sheet. However, the company cautions that the completion of the offering is subject to various risks and uncertainties, including market conditions and fluctuations in stock price, which could impact the final terms of the offering.