BUZZ - CareTrust REIT shares fall due to $637.5 million equity financing

November 12 - ** Before Thursday's market open, CareTrust REIT (CTRE.N) shares fell 1% to $38.24 after the company announced the pricing of its follow-on offering overnight

** The real estate investment trust (REIT), which focuses on skilled nursing and senior housing, announced Thursday morning it will issue 17 million shares via a forward sale (link) to raise approximately $637.5 million

** The offering is priced at $37.50 per share, representing a 2.9% discount to Wednesday's closing price

** The company has signed a one-year forward sale agreement with Bank of America and Morgan Stanley

** Upon settlement of the agreement, the company intends to use the net proceeds for general corporate purposes, including potential future acquisitions or investments, or debt repayment

** Bank of America, Morgan Stanley, JPMorgan, and Wells Fargo are acting as joint book-running managers for this offering

** Dana Point, California-based CTRE currently has about 257.7 million shares outstanding

** As of Wednesday's close, shares are up about 7% year-to-date, while the S&P 400 Healthcare REITs Index has risen about 13% .SPMDHCRE

** According to London Stock Exchange Group (LSEG) data, the average rating among 13 analysts is “buy”; the median target price is $43.50

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