Pursuant to Rules 424(b)(3) and 424(c)
Registration No. 333-15329
PROSPECTUS SUPPLEMENT #2
To Prospectus dated November 19, 1996
STERLING HOUSE CORPORATION
Sterling House Corporation (the "Company") has prepared this Prospectus
Supplement #2 to update certain information included in the Company's
Prospectus dated November 19, 1996 relating to the Company's $35,000,000
aggregate principal amount of Convertible Subordinated Debentures due 2006
(the "Debentures"), issued in a private placement on May 17, 1996 (the
"Debenture Offering") and the 1,561,106 shares of common stock, no par value,
of the Company that are issuable upon conversion of the Debentures, subject to
adjustment under certain circumstances.
The table set forth on Page 17 of the Prospectus, under the caption "SELLING
DEBENTUREHOLDERS," is hereby supplemented as follows:
<TABLE>
<CAPTION>
Principal Amount Principal Amount
of Debentures of Debentures Percent of Outstanding
Name Beneficially Owned That May be Sold Debentures
- ---- ------------------ ---------------- --------------------
<S> <C> <C> <C>
Bank of New York $2,120,000 $2,120,000 6.1%
Bankers Trust Company 400,000 400,000 1.1%
Brown Brothers Harriman
& Co. 1,400,000 1,400,000 4.0%
Chase Manhattan Bank 330,000 330,000 *
Chase Manhattan Bank, Trustee
IBM Corp. Retirement
Trust Dtd. 12/18/45 500,000 500,000 1.4%
Bankers Trust Company, Trustee
Chrysler Retirement Plan 3,500,000 3,500,000 10.0%
Citicorp Services, Inc. 970,000 970,000 2.8%
Commerce Bank of Kansas City,
N.A. 250,000 250,000 *
Foundation Account No. 1 510,000 510,000 1.5%
Investors Bank & Trust 3,000,000 3,000,000 8.6%
Mellon Bank, Trustee
Nynex Master Pension Trust
Dtd. 01/01/84 500,000 500,000 1.4%
Michael W. Meyer 50,000 50,000 *
James J. O'Donnell 50,000 50,000 *
Nicholas K. Pontikes, Trustee
U/A Dtd. 08/24/95
Pontikes Investments Tr. 100,000 100,000 *
Prudential Securities
Incorporated 200,000 200,000 *
Raymond James & Associates,
Inc. 355,000 355,000 1.0%
<PAGE>
Principal Amount Principal Amount
of Debentures of Debentures Percent of Outstanding
Name Beneficially Owned That May be Sold Debentures
- ---- ------------------ ---------------- ---------------------
Sanwa Bank California 990,000 990,000 2.8%
Elizabeth Scofield 50,000 50,000 *
Nanette Scofield 50,000 50,000 *
Nanette Scofield & Elizabeth
Scofield, Trustees U/A Dtd.
06/28/77 Anthony L. Scofield
Trust 50,000 50,000 *
SSB-Custodian
Global Proxy Unit, S5N W 5,350,000 5,350,000 15.3%
State Street - Custodian
GE Pension Trust 2,500,000 2,500,000 7.1%
Strategic Restructuring
Partnership, L.P. 200,000 200,000 *
Swiss American Securities,
Inc. 1,190,000 1,190,000 3.4%
Edith G. Tanenbaum 50,000 50,000 *
Thermo Securities Corporation 100,000 100,000 *
Andrew L. Turner, Trustee
U/A 06/14/94 450,000 450,000 1.3%
UMB Bank, N.A. 2,000,000 2,000,000 5.7%
Martin Walsh 50,000 50,000 *
Wilmington Trust Co. 20,000 20,000 *
Winchester Convertible Plus
Ltd. 2,120,000 2,120,000 6.1%
- ---------------------------
* Represents less than 1% ownership.
</TABLE>
The date of this Prospectus Supplement is June 24, 1997.
