Alterra to issue $138 million in convertible debt.Alterra Healthcare Corporation, the nation's largest assisted living as·sist·ed living n. A living arrangement in which people with special needs, especially older people with disabilities, reside in a facility that provides help with everyday tasks such as bathing, dressing, and taking medication. operator, has entered into a definitive agreement to issue $138 million of convertible senior debentures and convertible preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. to certain investors. The investors include significant existing shareholders as well as an investment entity formed by William Colson, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Holiday Retirement Corporation, the nation's top retirement community operator, and Daniel Baty, chairman, CEO, and director of Emeritus e·mer·i·tus adj. Retired but retaining an honorary title corresponding to that held immediately before retirement: a professor emeritus. n. pl. Corporation, an assisted living chain. Alterra will use the proceeds to: * Finance the completion of residences under construction; * Repay certain interim bridge indebtedness provided by one of the investors; * Acquire a recently built portfolio of 14 company-managed assisted living residences from certain investors and affiliates; * Selectively acquire third-party equity interests in certain of its joint-venture arrangements; and * Provide for working capital and other corporate purposes. In a prepared statement, Bill Lasky, president and CEO of Milwaukee-based Alterra, said the transaction "will provide us with a significant capital infusion Capital infusion Often refers to the cross-subsidization of divisions within a firm. When one division is not doing well, it might benefit from an infusion of new funds from the more successful divisions. at a critical juncture in our company's history. And we are delighted to forge a new relationship with Messrs. Baty and Colson." |
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