NEW YORK (TheStreet) -- Shares of Brookdale Senior Living (BKD) fell 3.19% to $33.40 in after-hours trading Monday after the company announced a public offering of 8.75 million shares of common stock.
Brookdale, which operates residences for senior citizens, included a 30-day option in the offering for underwriters to purchase up to 1,312,500 shares.
The company said in a statement it plans to use the net proceeds from the offering to "finance the exercise of purchase options on certain communities currently leased by the company, to repay certain outstanding indebtedness with a weighted average interest rate of 7.3% and for other general corporate purposes, which may include additional debt repayments and the acceleration of capital investments in the company's communities and corporate infrastructure platform."
Separately, TheStreet Ratings team rates BROOKDALE SENIOR LIVING INC as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate BROOKDALE SENIOR LIVING INC (BKD) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income and revenue growth. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins."