Next week, Care Capital Properties, Inc. (NYSE:CCP) will begin trading on the New York Stock Exchange. The Chicago-based healthcare REIT will spin off from Ventas, Inc. (NYSE:VTR) by issuing approximately 84 million shares and OP units, and begin trading on August 18th (the first day of trading).
On July 30th, VTR’s board of directors approved the spin-off and declared a distribution of 1 share of Care Capital common stock for every 4 shares of Ventas common stock held at the close of business on August 10th (the record date for the distribution).
VTR shareholders are not required to take any action to receive the shares of CCP common stock, and they will not be required to surrender or exchange their VTR shares. Additionally, the number of VTR shares owned by each shareholder will not change as a result of the distribution.
There is currently no market for CCP common stock, which will be issued in book-entry form only – meaning, no physical shares will be issued. The company anticipates that “when-issued” trading under the symbol CCP WI. Holders who sell the right to CCP common stock in the “when-issued” market on or before the distribution date will retain their shares of VTR common stock.
Upon the distribution, “when-issued” trading is expected to end, and “regular-way” trading is expected to begin under the ticker symbol CCP.
VTR’s common shares will continue to trade in the “regular-way” market with the entitlement to receive the CCP common stock being distributed. Holders who sell Ventas common stock in the “regular-way” market before and on the distribution date will also sell their right to receive CCP common stock.
VTR’s common shares will also trade in the “ex-distribution” market under the symbol VTR WI without the entitlement to receive the CCP common stock being distributed. Holders who sell Ventas common stock in the “ex-distribution” market on or before the distribution date will retain their right to receive CCP common stock in the distribution.
