Emeritus closes $40M equity investment.Seattle-based Emeritus Assisted Living Emeritus Corporation (AMEX: ESC) is a retirement home company based in Seattle, Washington. The company runs assisted living homes for people who may need some help with daily activities but don't need skilled nursing care (offered at a few of its properties). has closed a $40 million investment by Saratoga Partners IV LP, and funded the first $30 million of the investment, with the remainder to be funded in the first quarter of 2000. Saratoga's investment is in the form of convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". with a conversion price of $7.22 per share and a 6 percent initial dividend. Emeritus e·mer·i·tus adj. Retired but retaining an honorary title corresponding to that held immediately before retirement: a professor emeritus. n. pl. will use a portion of the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). to buy 20 ALFs, representing 1,450 units and currently generating about $35 million in annual revenue and $14 million in earnings. |
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