BUZZ - LifeStance Health shares drop as sponsor sells shares in $590 million secondary offering

Updated pricing details

November 9 - ** Outpatient mental health services provider LifeStance Health (LFST.O) saw its shares fall 2% in premarket trading on Monday, to $13.50, after the company announced pricing for a secondary offering.

** LFST, headquartered in Scottsdale, Arizona, announced (link) that certain shareholders will offer 45 million shares at $13.12 each; the transaction size is about $590.4 million.

** The offering price represents a 4.7% discount to Friday's closing price.

** According to the prospectus, private equity firms TPG Capital TPG.O and Summit Partners will sell approximately 37.2 million and about 7.8 million shares respectively (link) (link).

** Additionally, LFST will simultaneously repurchase 2 million shares from this offering from bookrunners Barclays and JPMorgan.

** TPG and Summit previously sold LFST stock at $12.35 in a secondary offering in September (link).

** As of October 28, LFST had about 380.2 million shares outstanding.

** As of Friday's close, the stock was up 96% year-to-date.

** According to data from London Stock Exchange Group (LSEG), 9 out of 11 analysts rate the stock as "strong buy" or "buy", while 2 rate it as "hold"; the median price target is $16.50, up from $13 three months ago.

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