Activist investor Ortelius Advisors, one of the largest owners of Capital Senior Living Corp, intends to block the company’s plan to raise cash, arguing the deal would hurt existing shareholders, Reuters reports.
Ortelius’ founder Peter DeSorcy informed the company’s board today that his firm dislikes how the Dallas-headquartered operator of assisted living and related facilities wants to raise $152.5 million, and signalled a willingness to provide a near-term infusion of cash himself.
Two weeks ago Capital Senior Living said it would raise capital through a private placement of convertible preferred stock to affiliates of Conversant Capital, and that Conversant had agreed to backstop a rights offering and provide an incremental $25 million accordion for future investment. Read more.
