Benzinga | Jan 6, 2021 05:41AM EST

AdaptHealth Priced 8M Share Public Offering of Class A Common Stock @$33/Share

AdaptHealth Corp. (NASDAQ:AHCO) announced Tuesday the pricing of its previously announced underwritten public offering of 8,000,000 shares of its Class A Common Stock, at a price to the public of $33.00 per share. The offering consists of 7,250,000 shares of Class A Common Stock being sold by the Company and an additional 750,000 shares of the Company's Class A Common Stock being sold by a selling stockholder. The gross proceeds to AdaptHealth before deducting the underwriting discounts and commissions and estimated offering expenses are expected to be approximately $239.25 million. The Company will not receive any proceeds from the sale of Class A Common Stock by the selling stockholder.

In conjunction with the offering, the Company has granted the underwriters a 30-day option to purchase up to 1,200,000 additional shares of Class A Common Stock. The offering is expected to close on January 8, 2021, subject to the satisfaction of customary closing conditions.

The Company intends to use approximately half of the net proceeds of the shares offered by it in this offering, together with senior secured term loan borrowings, the net proceeds from the issuance of unsecured senior notes and cash on hand, to finance the Company's previously announced acquisition of AeroCare Holdings, Inc. ("AeroCare") and to pay related fees and expenses, and the remainder for general corporate purposes, which may include future acquisitions and other business opportunities, capital expenditures and working capital. The closing of the AeroCare acquisition is not dependent on the consummation of the offering, and the consummation of the offering is not dependent on the closing of the acquisition.

Deutsche Bank Securities, Jefferies, BofA Securities and Truist Securities are acting as lead book-running managers for the offering. Baird, RBC Capital Markets, Stifel and UBS Investment Bank are acting as joint book-running managers for the offering. Canaccord Genuity, SVB Leerink, Citizens Capital Markets, Regions Securities LLC, Fifth Third Securities, Janney Montgomery Scott and KeyBanc Capital Markets, are acting as co-managers for the offering.