VCA Antech Inc., a Los Angeles-based chain of animal hospitals and laboratories, registered $200 million of common stock with the U.S. Securities and Exchange commission to be used for future acquisitions, thereby conserving cash for other uses.
It plans to acquire hospitals with aggregate annual revenues of $60-70 million each year, but is also trying to accumulate cash. It currently holds about $521 million in bank debt, with notes coming due in May 2011.
The company acquired 51 hospitals and four labs in 2008, 73 hospitals and two labs in 2007 and 22 hospitals and three labs in 2006.
The company does not expect its long-term cash flow from operations to be sufficient to pay its long-term debt at that time, according to its SEC filing.