Regency Health Services to Offer Stock

Regency Health Services Inc., a nursing home chain that specializes in rehabilitation services, is planning an initial public stock offering of 2.4 million shares.

The shares would sell for $10 to $12 with an expected $25 million in proceeds to be used to reduce corporate debt, according to documents filed last week with the Securities and Exchange Commission. The stock would trade on the National Assn. of Securities Dealers Automated Quotation system, or NASDAQ exchange.

The Newport Beach-based company was formed in December, 1986. Craig Nordstrom, Regency’s senior vice president, declined to reveal the company’s annual sales.

In January, Regency acquired Hallmark Health Services Inc., which had 10 facilities, giving Regency a total of 32 California facilities, the documents said.

As part of the initial public offering, Sunset Convalescent Corp. plans to sell an additional 141,666 shares, or its entire 3.5% stake in Regency, the documents said.

PaineWebber Inc. and Prudential Securities Inc. will underwrite the offering.