RehabCare prices share offering at $24 apiece

AP News
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Posted: Nov 13, 2009 12:08 PM

RehabCare Group Inc., a provider of physical therapy services, said Friday it has priced its public offering of 5.4 million shares of common stock at $24 each.

The stock rose $1.33, or 5 percent, to $26.45 in midday trading.

The company, based in St. Louis, plans to use the proceeds, along with funds from new senior debt and cash on hand, to fund its acquisition of Triumph HealthCare. If that deal does not close, the company will use the proceeds for general expenses.

The underwriters have the option to buy an additional 810,000 shares to cover any overallotments. BofA Merrill Lynch and JPMorgan are book-running managers. Deutsche Bank Securities, RBC Capital Markets and Morgan Keegan & Co. are co-managers.

The offer is expected to close Nov. 18.