Bright Health closes $750 million convertible perpetual preferreds

By Wendy Van Sickle

Columbus, Ohio, Jan. 3 – Bright Health Group, Inc. entered into an investment agreement with some subsidiaries of Cigna Corp. and some affiliates of New Enterprise Associates as purchasers for the sale of $750 million of series A convertible perpetual preferred stock, according to an 8-K filing with the Securities and Exchange Commission.

The issuance of the preferreds closed on Jan. 3.

The securities are convertible into shares of the company’s common stock at an initial conversion price of $4.55.

The company’s shares closed at $3.72 on Monday.

The company may convert the preferreds after three years if the closing price of the shares on the New York Stock Exchange is greater than $7.96 for at least 20 days in a period of 30 consecutive trading days.

The preferreds are convertible at 105 after five years and at par after seven years.

Based in Minneapolis, Bright Health is a technology-enabled, fully aligned system of care built for healthcare's consumer retail market.

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