WellCare Health Plans Inc. has priced an offering of 4,528,302 common shares at a public price of $265.00 apiece.
The underwriters were given a 30-day option to purchase up to an additional 679,245 common shares. The offering is expected to close on or about Aug. 10.
WellCare intends to use net proceeds of approximately $1.16 billion to fund a portion of the cash consideration for its previously announced 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 are serving as joint book-running managers and as representatives of the underwriters. Goldman Sachs & Co. LLC, Wells Fargo Securities LLC, Merrill Lynch Pierce Fenner & Smith Inc., MUFG Securities Americas Inc. and BTIG LLC are also serving as joint book-running managers.