(By Balaseshan) Team Health Holdings LLC (NYSE:TMH) announced the pricing of a secondary offering of 8 million shares of its common stock to be sold by certain stockholders at $23.95 per share, a 7.5% discount to Thursday's stock closing price.
The common stock was being sold by its principal stockholder, Ensemble Parent LLC, an investment fund affiliated with The Blackstone Group L.P., and by certain of TeamHealth's officers and directors.
Ensemble Parent LLC is selling 7.925 million shares and certain of the company's officers and directors are selling 75,000 shares.
The secondary offering is pursuant to a registration statement that TeamHealth previously filed with the Securities and Exchange Commission. As of June 22, 2012, there were 66.096 million shares of its common stock outstanding.
Ensemble Parent LLC has granted the underwriters an option to purchase up to 1.2 million additional shares of common stock. TeamHealth will not receive any proceeds from the sale of shares in the offering.
Barclays (BCS) and Citigroup (C) are acting as joint book-running managers for the offering.
The company currently expects to retain future earnings, if any, for use in the operation and expansion of its business and does not anticipate paying any cash dividends in the foreseeable future.
The company's ability to pay dividends on its common stock is limited by the covenants of its senior secured credit facilities and may be further restricted by the terms of any future debt or preferred securities.
TMH is trading down 6.80% at $24.13 on Friday. The stock has been trading between $15.08 and $25.89 for the past 52 weeks.