National HealthCare Corporation Completes Redemption of Series A Convertible Preferred StockPosted 11/04/2015
MURFREESBORO, Tenn. -- National HealthCare Corporation (NYSE MKT: NHC, NHCPRA), the nation's oldest publicly traded senior health care company, today announced that it has redeemed all outstanding shares of its Series A Convertible Preferred Stock (the "Preferred Stock") effective November 3, 2015. Holders of the Preferred Stock elected to redeem approximately 8.3 million preferred shares for approximately $130.6 million. The Preferred Stock had a redemption price of $15.75 per share, plus an accrued dividend of $0.04 per share, for a total of $15.79 per share. The funding of the Preferred Stock redemption was provided by the Company's cash on hand and borrowings under the previously announced $175 million credit facility.
In lieu of redemption, holders of the Preferred Stock had the option of converting any or all of their shares into shares of the Company's common stock. Prior to the redemption, a total of approximately 2.5 million preferred shares were converted into approximately 600,000 shares of the Company's common stock.
"We chose to call the Preferred Stock because we believe the redemption increases the future cash flows and operating results of the Company", stated NHC's Chairman and CEO, Robert Adams. "With the conclusion of the redemption, we continue to focus on implementing strategies to enhance shareholder value while continuing to provide outstanding patient-centered care." View as PDF
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