BHG - Bright Health up 10% after raising capital from Cigna Ventures and NEA

Bright Health Group (NYSE:BHG) moves up 10% in post-market trading after the company discloses a $750M capital raise plan. The integrated care delivery company says Cigna Ventures and Bright Health's largest existing shareholder, New Enterprise Associates, will invest in the company through the purchase of $750M of convertible perpetual preferred stock, in aggregate. Series of this preferred stock carries a 5.0% dividend, and will be convertible into common stock at an initial conversion price of ~$4.55/share, representing a 25% premium. "The investment from these two leading institutions demonstrates support for the expansion of Bright Health Group’s differentiated alignment model," the company statement. The financing is expected to close in January 2022, subject to customary closing conditions. Earlier, Bright Health Group says that it expects its care delivery business, NeueHealth, to generate $2B in revenue next year "with a meaningful contribution from external payor relationships."

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Bright Health up 10% after raising capital from Cigna Ventures and NEA