price, attesting to strong support from long-
only investors.
Kemper’s stock price has more than
tripled since early 2016.
Last year saw Kemper in part use its stock
CURRENCYûTOûPURCHASEû)NlNITYû0ROPERTYûANDû
Casualty for US$1.4bn, the past week’s stock sale
enabling Kemper to take out some extra debt on
its balance sheet following the acquisition.
“This offering is very much a one-off – the
stock has performed exceptionally well for a
number of years,” a banker said. “They had a
DElNEDûNEEDûANDûAREûNOTûAûREPEATûISSUERv
VENTAS FUNDS CANADIAN SENIORS
HOUSING VENTURE
REIT VENTAS moved late last Monday to
partly fund an aggressive move into the
Canadian seniors housing market with
US$690.3m of gross proceeds from an
overnight stock sale.
Morgan Stanley, Citigroup and JP Morgan
JOINEDûFORCESûLATEû-ONDAYûTOûlNDûBUYERSûFORû
11m Ventas shares or 4% of outstanding.
They priced the offering at US$62.75 a
share, towards the lower end of the
US$62.50-$63.50 marketing range and a 2.2%
discount to last sale.
The shares fell to US$62.20 in Tuesday’s
aftermarket, though like other recent REIT
offerings it was able to quickly recoup losses
in subsequent sessions.
The deal came a day ahead of a
management appearance at the NAREIT
REITweek conference in New York and as
Ventas revealed the C$2.4bn purchase of 31
seniors housing properties and four
developments in Quebec via an 85%/15%
joint venture with local developer and
operator Le Groupe Maurice.
4HEûlNISHEDûPROPERTIESûAREûBEINGû
purchased at estimated yields of 5.5% and
the developments at 6.5%, though the deal is
expected to be only neutral to 2019
normalised FFO and accretive to 2020 by
only 3 cents a share.
The deal is closing in two stages
starting with a C$987m bridge loan from
Ventas to LGM to enable it to buy out itscurrent JV partner (unnamed in Ventas’
release).
“It was a very opportunistic situation,”
Ventas CEO Debra Cafaro told investors in a
REITweek presentation on Tuesday. “We
were presented with an off-market
opportunity for great assets with a good
GROWTHûPROlLEû/URûEXPERIENCED û
interdisciplinary team was able to swarm
the transaction and complete it in a short
time frame because the transaction was on a
VERYûSPECIlEDûTIMEûFRAMEv
Ventas, whose shares were up 17.6% in
the past year ahead of the offering and
currently pay a 5% dividend (based on the
past four quarterly payouts), last tapped the
equity well in 2016, raising a similar amount
(about US$650m) though at the higher mark
of US$72.10 a share.
Ventas already owns 1,200 properties,
many of them leased under triple-net
arrangements and with Brookdale Senior
,IVING û!RDENTû(EALTHû0ARTNERSûONûlLEûFORûANû
IPO) and Kindred Healthcare among its three
largest tenants.ECM DEALS: WEEK ENDING 7/6/2019
Stock Country Date Amount Price Deal type Bookrunner(s)
Charter Hall Long Wale REIT Australia 06/06/2019 A$190m A$4.74 Follow-on (primary) JP Morgan, UBS
Prospa Australia 03/06/2019 A$110m A$3.78 IPO (primary/secondary) Macquarie, UBS
Summit Industrial Income REIT Canada 03/06/2019 C$130.0m C$12.50 Accelerated bookbuild (primary) BMO Capital Markets
China East Education China 05/06/2019 HK$4.9bn HK$11.25 IPO (primary) BNP Paribas, CICC, Haitong International
China Tobacco Intl (HK) China 03/06/2019 HK$813m HK$4.88 IPO (primary) CICC, China Merchants Securities
CSSC (Hong Kong) Shipping China 06/06/2019 HK$2.05bn HK$1.34 IPO (primary) CICC, CLSA, CCB International, Fortune Securities
GSX Techdu China 06/06/2019 US$208m US$10.50 IPO (primary) Credit Suisse, Deutsche Bank, Barclays, CLSA
Hansoh Parmaceutical China 05/06/2019 HK$7.86bn HK$14.26 IPO (primary) Citigroup, MS, China Merchants Securities, GS, UBS
Tai Hing Group China 05/06/2019 HK$750m HK$3 IPO (primary) BoCom International
Befesa Germany 05/06/2019 €215.9m €34 Accelerated bookbuild (secondary) Citigroup, JP Morgan
Marel Iceland 06/06/2019 €336.3m €3.70 IPO (primary) Citi, JPM, ABN AMRO, Rabobank (STJ Advisors)
Entra Norway 04/06/2019 NKr2.5bn NKr123.50 Accelerated bookbuild (secondary) ABG Sundal Collier, Carnegie, UBS
Fjordkraft Norway 03/06/2019 NKr666.2m NKr42.50 Accelerated bookbuild (secondary) ABG Sundal Collier
Nel Norway 03/06/2019 NKr844m NKr7.47 Accelerated bookbuild (secondary) Arctic Securities, Carnegie
PLDT Philippines 03/06/2019 Ps3.3bn Ps1,238 Follow-on (secondary) JP Morgan
Castelbajac South Korea 03/06/2019 W28.4bn W12,000 IPO (primary) NH Investment & Securities
John Mattson Sweden 03/06/2019 SKr1.305bn SKr90 IPO (secondary) Carnegie, Svenska Handelsbanken
Ambea Sweden 05/06/2019 SKr1.2bn SKr45 Rights issue Danske Bank, DNB, Nordea
Resurs Sweden 04/06/2019 SKr1.07bn SKr54 Accelerated bookbuild (secondary) Carnegie, Morgan Stanley, SEB
AJ Bell UK 06/06/2019 £144.4m 380p Accelerated bookbuild (secondary) Numis
Orchard Therapeutics UK 05/06/2019 US$128.3m US$14.25 Follow-on (primary) JP Morgan, Goldman Sachs, Cowen, Barclays
Avalara US 05/06/2019 US$249.8m US$69.40 Follow-on (primary) Goldman Sachs, BAML, Morgan Stanley
Axa Equitable Holdings US 04/06/2019 US$838.0m US$20.95 Accelerated bookbuild (secondary) Morgan Stanley, Barclays
BJ’s Wholesale Club US 05/06/2019 US$431.4m US24.65 Accelerated bookbuild (secondary) Goldman Sachs
Descartes Systems US 05/06/2019 US$213.0m US$35.50 Follow-on (primary) Barclays, RBC Capital Markets
FreshPet US 05/06/2019 US$154.0m US$46. 75 Accelerated bookbuild (secondary) Goldman Sachs
GigCapital 2 US 05/06/2019 US$150.0m US$10.00 IPO (primary) Earlybird Capital, Northland Securities
Haymaker Acquisition II US 06/06/2019 US$350.0m US$10.00 IPO (primary) Cantor
I3 Verticals US 05/06/2019 US$102.2m US$22.75 Follow-on (primary) Cowen, Raymond James, BAML
Kemper US 04/06/2019 US$112.1m US$83.00 Accelerated bookbuild (primary) Credit Suisse
NW Natural Holdings US 04/06/2019 US$83.8m US$67.00 Accelerated bookbuild (primary) JP Morgan, RBC Capital Markets, Wells Fargo
Q2 Holdings US 05/06/2019 US$159.9m US$69.50 Follow-on (primary) JP Morgan, Morgan Stanley, Stifel
Revolve US 06/06/2019 US$211.8m US$18.00 IPO (primary) Morgan Stanley, Credit Suisse, BAML
Sientra US 04/06/2019 US$100.1m US$5.75 Follow-on (primary) Stifel, William Blair, SVB Leerink
Ventas US 03/06/2019 US$690.3m US$62.75 Accelerated bookbuild (primary) Morgan Stanley, Citigroup, JP Morgan
Verra Mobility US 05/06/2019 US$187.5m US$12.50 Follow-on (secondary) Deutsche Bank, Morgan Stanley