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Nashville, Tennessee (December 16, 1996) - Renal Care Group, Inc. (Nasdaq/NM:RCGI) today announced that the underwriters have exercised their over-allotment option to purchase an additional 375,000 shares of Common Stock of Renal Care Group, Inc. at $32.00 per share, which option was granted in connection with the Company's recent equity offering of 2.5 million shares, which commenced on November 19, 1996. Of the 375,000 shares to be purchased, 281,250 shares will be sold by the Company and 93,750 shares will be sold by certain selling shareholders. After the exercise of the over-allotment option, these selling shareholders will continue to own about 80% of the shares they held in the aggregate at the time of their initial transactions.
The net proceeds to the Company from the exercise of the over-allotment options were approximately $8.5 million, increasing to approximately $41 million the total net proceeds from the equity offering. The Company intends to use the additional net proceeds from the offering for general corporate purposes plus acquisitions.
Equitable Securities Corporation; Hambrecht & Quist LLC; Morgan Keegan & Company, Inc.; and Needham & Company, Inc. served as managing underwriters for the offering
Renal Care Group, Inc. is a nephrology services company that was founded in June 1995 to focus on the provision of care to patients with kidney disease, including patients suffering from chronic kidney failure. The Company currently provides dialysis and ancillary services to over 5,000 patients through 90 owned and managed outpatient dialysis centers in 15 states, in addition to acute dialysis services to 45 hospitals. |
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