Irvine-based Sun Healthcare Group Inc. said Friday that it priced a public stock offering that could net it $195 million to $225 million.
The operator of nursing homes, assisted living facilities and rehabilitation center said it priced 26.7 million shares at $7.75 apiece. Underwriters have a 30-day option to buy up to 4 million additional shares.
Sun’s shares were trading at about $8 Friday with a market value of some $500 million.
Proceeds from the offering will be used to repay Sun debt as part of a step leading up to its planned break into two publicly traded companies.
The breakup is set to create Sabra Health Care REIT Inc., an owner of healthcare real estate, and a nursing home company that will retain the Sun name.
Sun is splitting the companies in two in a bid to create value on Wall Street for its real estate. The split’s expected to be completed in the fourth quarter.
The company said it expects the stock offering to close Wednesday. Sun originally had said it planned to sell about 20 million shares and raise about $160 million in its offering.
