Sun Healthcare readies public offering of 26.7 million shares
The rehabilitation and medical staffing company Sun Healthcare Group, Irvine, Calif., announced plans for a public offering of 26.7 million shares, with the net proceeds expected to total between $195 million and $225 million, according to a news release from the company. The offering, which is being underwritten by financiers who have 30-day options to purchase an additional 4 million shares, will be used to pay down a portion of an existing credit facility by the publicly traded company. Sun Healthcare’s subsidiaries include nursing-center operator SunBridge Healthcare Corp., rehab provider SunDance Rehabilitation, medical staffing firm CareerStaff Unlimited and hospice provider SolAmor Hospice. The company had $42 million in earnings before interest, taxes, depreciation and amortization on $475 million in revenue in the quarter ended June 30. Richard Matros, Sun’s CEO and chairman, is the eighth-highest paid CEO on Modern Healthcare’s ranking of healthcare for-profit specialty-care providers (See related story and chart, p. 6).