Healthcare Trust Files to Issue $40 Million in Preferred Stock
November 5, 2019 | Blue Vault
Healthcare Trust, Inc. filed a prospectus to issue $40 million in Series A Cumulative Redeemable Perpetual Preferred Stock. The company plans to use the proceeds to purchase additional properties and other general corporate purposes. The form S-11 that was filed with the SEC on November 4, 2019, reports a liquidation preference of $25.00 per share, but no price or dividend rate is given in the prospectus. Dividends on the Series A Preferred Stock will be payable quarterly in arrears on the 15th day of each January, April, July, and October of each year. The first quarterly dividend for the Series A Preferred Stock sold in the offering will be paid on January 15, 2020, and will represent an accrual for less than the full quarter, covering the period from November 2019 to December 2019.
The Series A Preferred Stock will rank senior to the REIT’s common stock with respect to dividend rights and rights upon its voluntary or involuntary liquidation, dissolution or winding up. The Series A Preferred Stock has no stated maturity and will remain outstanding indefinitely unless redeemed, converted or otherwise repurchased. If the REIT liquidates, dissolves or winds up, the holders of Series A Preferred Stock will have the right to receive $25.00 per share, plus an amount equal to all dividends accrued and unpaid (whether or not authorized or declared), if any, to, but not including, the date of payment, before any payments are made to the holders of common stock or any other shares of capital stock that rank junior to the Series A Preferred Stock with respect to liquidation rights.
The Series A Preferred Stock will rank junior to all the REIT’s existing and future debt and to other non-equity claims on the company and its assets available to satisfy claims against the company, including claims in bankruptcy, liquidation or similar proceedings. The REIT’s credit facility includes, and future debt may include, restrictions on the REIT’s ability to pay dividends to preferred stockholders, including holders of Series A Preferred Stock.
No current market exists for the Series A Preferred Stock or the REIT’s common stock. The company has applied to list the shares of the Series A Preferred Stock on The Nasdaq Global Market under the symbol “HTIA.” If the listing is approved, the company expects trading to commence within 30 days after the initial issuance of the shares of Series A Preferred Stock in the offering.
Healthcare Trust, Inc. has a $2.6 billion healthcare real estate portfolio focused on Medical Office Buildings (“MOB”) and Seniors Housing Operating Properties (“SHOP”). As of June 30, 2019, the REIT owned 191 properties, including 111 medical office buildings, 59 seniors housing operating, and six hospitals. The MOB properties were 90.6% leased and the SHOP properties were 85.3% leased. Those two segments represent over 90% of the REIT’s net operating income.
Source: SEC
