Sun Healthcare Well-Served On Secondary Filing (SUNH)

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Sun Healthcare Group (NASDAQ: SUNH) has filed for a mixed shelfoffering of $200 million this morning. They may periodically offer a combinationof common stock, preferred stock, debt securities, and warrants. The prospectusindicates the rehabilitation center and hospice operator does not have currentplans to sell any of these securities. The proceeds will be used for generalcorporate purposes including working capital, capital expenditures, and businessacquisitions.

Yesterday, Sun Healthcare released strong first quarterearnings, showing a 74% increase in revenue to $458.2 million from $262.6million first quarter last year. Net income was $8.6 million compared to $3.9million last year.  

Sun Healthcare is up $0.06 to $13.21 in early morningtrading. The 52-week range is $11.72 to $18.78. The market cap currently sitsat $566.7 million.

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Rachel Lopez
May 1, 2008