CareTrust REIT Enters into $750 Million Equity Distribution Agreement

CareTrust REIT, Inc. (NASDAQ: CTRE) has announced the signing of a new equity distribution agreement with CTR Partnership, L.P., involving various sales agents and forward purchasers. The deal, known as the “January 2025 ATM Program,” allows for the issuance and sale of common stock with an aggregate gross offering price of up to $750 million.

Under the terms of the agreement, sales of shares will be facilitated by sales agents or forward sellers through ordinary brokers’ transactions, negotiated transactions, or “at-the-market” offerings. Sales agents will earn a commission up to 2.0% of the sale price of all common stock sold. The company may also sell shares directly to sales agents as principals.

Forward sellers will manage the sale of shares in connection with separate forward transactions, aiming to match the number of shares specified in the forward sale agreement. The offering under the January 2025 ATM Program will end upon reaching the maximum sale amount or as stipulated in the agreement.

CareTrust REIT plans to utilize the net proceeds for general corporate purposes, including potential acquisitions, debt repayment, and working capital. Proceeds from the sale of shares will be directed to the Operating Partnership, maintaining the company’s real estate investment trust qualification.

As part of the agreement, CareTrust REIT terminated its previous equity offering program. Approximately $440.15 million worth of common stock remained unsold under the previous arrangement.

This report on Form 8-K clarifies that the shares’ sale should comply with securities laws regulations, ensuring legality across states. The company is committed to using the funds generated for strategic initiatives and operational needs.

The filing also includes details of the Equity Distribution Agreement, termination of the prior equity program, and legal opinions provided by DLA Piper LLP (US). The company’s Chief Financial Officer and Treasurer, William M. Wagner, signed off the report on January 21, 2025.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read CareTrust REIT’s 8K filing here.

CareTrust REIT Company Profile

CareTrust REIT, Inc’s (CareTrust REIT or the Company) primary business consists of acquiring, financing, developing and owning real property to be leased to third-party tenants in the healthcare sector. As of March 31, 2024, the Company owned directly or through a joint venture and leased to independent operators, 228 skilled nursing facilities (SNFs), multi-service campuses, assisted living facilities (ALFs) and independent living facilities (ILFs) consisting of 24,189 operational beds and units located in 29 states with the highest concentration of properties by rental income located in California and Texas.