IRVINE, Calif., March 14, 2013 (GLOBE NEWSWIRE) -- Sabra Health Care REIT, Inc. ("Sabra" or the "Company") (Nasdaq:SBRA) today announced the pricing of an underwritten public offering of 5,000,000 shares, or $125.0 million, of 7.125% Series A Cumulative Redeemable Preferred Stock (the "Series A Preferred Stock") at a price of $25.00 per share, pursuant to an effective registration statement. The Company granted the underwriters a 30-day option to purchase up to an additional 750,000 shares of its Series A Preferred Stock. The offering of 5,000,000 shares of Series A Preferred Stock is expected to close on March 21, 2013, subject to customary closing conditions.
The Company estimates that the net proceeds of the offering, after deducting underwriting discounts and other estimated offering expenses, will be approximately $120.0 million, and approximately $138.2 million if the underwriters exercise their option to purchase additional shares of Series A Preferred Stock. The Company intends to contribute the net proceeds from this offering to its operating partnership subsidiary, Sabra Health Care Limited Partnership, which will in turn apply the proceeds to repay borrowings outstanding on the Company's amended secured revolving credit facility. The remaining proceeds to the Company will be used to fund possible future acquisitions or for general corporate purposes.
Jefferies LLC, Citigroup Global Markets Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated acted as joint book-running managers for the offering. Raymond James & Associates, Inc. and Stifel, Nicolaus & Company, Incorporated acted as co-managers.Sabra has filed a shelf registration statement on Form S-3 (including a prospectus) relating to the offering described above with the SEC, which registration statement was declared effective on October 31, 2011. Before you invest, you should read the prospectus supplement, the prospectus and the other documents Sabra has filed with the SEC for more complete information about Sabra and this offering. You may obtain copies of these documents for free on the website of the SEC at www.sec.gov or by contacting Jefferies LLC at 520 Madison Avenue New York, New York 10022; Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717; Merrill Lynch, Pierce, Fenner & Smith Incorporated at One Bryant Park, New York, New York 10036; Raymond James & Associates at 880 Carillon Parkway, St. Petersburg, Florida 33716; and Stifel, Nicolaus & Company, Incorporated at 501 N. Broadway, St. Louis, Missouri 63102. This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any offer, solicitation or sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. The offering may be made only by means of the prospectus relating to the proposed offering.