Summit Care Receives $28.6 Million in Stock Sale

Summit Care Corp., a Burbank nursing home operator, said it has received net proceeds of $28.6 million through a public offering of 1.7 million shares of common stock at $17.75 per share.

Also, the company said it received a $25-million two-year revolving credit line from three banks.

The proceeds from the stock sale and the line of credit will be used to repay $10 million in debt and fund a $7.9-million expansion, including the addition of 242 skilled nursing beds in California and Arizona and a second pharmacy in Southern California. The remainder will be set aside for acquisitions and improvements of existing facilities.

Managing underwriters for the offering were Dillon, Read & Co., Robertson, Stephens and Co. and Smith Barney Inc.