Brookdale Senior Living to Sell $902.8 Million in Shares

June 15 (Bloomberg) -- Brookdale Senior Living Inc., a money-losing operator of assisted-living homes for senior citizens, said it will sell $902.8 million worth of shares to help finance its purchase of American Retirement Corp.
Brookdale, which first sold shares to the public in November, last month agreed to buy Brentwood, Tennessee-based American Retirement for $1.2 billion to create the largest U.S. company of its kind. Brookdale had a net loss of $19 million in the first quarter and a net loss of $51 million in 2005.
Chicago-based Brookdale received $1.3 billion in financing from a fund managed by an affiliate of its largest shareholder, Fortress Investment Group LLC, and the stock offering will reduce that commitment by $650 million, Brookdale said in a filing with the U.S. Securities and Exchange Commission.
Brookdale shares fell 48 cents, or 1.1 percent, to $43.92 as of 4:16 p.m. in New York Stock Exchange composite trading. Before today, they had more than doubled since the company first sold shares to the public. Shares of American Retirement rose 2 cents, or 0.1 percent, to $32.68.
Brookdale will offer about $700 million worth of shares, while its second-biggest investor, Health Partners, an affiliate of Capital Z Partners, will offer $85 million in stock. Health Partners has also given underwriters of the offering an option to buy another $117.8 million worth of its shares.
Goldman Sachs Group Inc., Lehman Brothers Holdings Inc., Citigroup Inc.'s Citigroup Global Markets, JP Morgan Securities Inc., UBS Securities LLC and Cohen & Steers Capital Advisors LLC will act as underwriters for the offering.