HealthSpring is conducting a public stock offering that that it expects will net $262 million.
The Nashville-based Medicare Advantage health plan provider announced Thursday that it would offer 7.5 million shares of its common stock, and Friday morning priced the shares at $35.95. Before offering expenses and underwriting discounts, the offering raises nearly $270 million.
The company has also granted underwriters a 30-day option to buy an additional 1.125 million shares. Selling all 8.6 million shares would raise a total of more than $310 million. The company plans to use at least half of its proceeds to pay down debt, with the rest going toward general corporate purposes, including acquisitions.
Goldman, Sachs & Co. acted as the sole book-running manager with BofA Merrill Lynch acting as co-manager.
According to HealthSpring's filing with the Securities and Exchange Commission, the company will have approximately 66.5 million shares outstanding after the offering is complete. It expects the sale will close March 29.