WellCare Health Plans Inc. closed a previously announced offering of 5,207,547 common shares at a public price of $265 apiece, including the full exercise of the underwriters' option to purchase up to an additional 679,245 common shares.
The proceeds to WellCare were approximately $1.38 billion, before deducting underwriting discounts, commissions and offering expenses. WellCare intends to use the net proceeds to fund a portion of the cash consideration for its acquisition of Meridian Health Plan of Michigan Inc., Meridian Health Plan of Illinois Inc. and MeridianRx, to pay related fees and expenses, and for general corporate purposes.
If the acquisition is not completed, WellCare will use the net proceeds for general corporate purposes.
SunTrust Robinson Humphrey Inc. and J.P. Morgan Securities LLC acted as joint book-running managers and as representatives of the underwriters for the offering. Goldman Sachs & Co. LLC, Wells Fargo Securities LLC, Merrill Lynch Pierce Fenner & Smith Inc., MUFG Securities Americas Inc. and BTIG LLC also acted as joint book-running managers.