Bright Health raises $750 million
Bright Health announced a $750 million financing that includes investments by Cigna Ventures and New Enterprise Associates (NEA).
Under the terms of the investment, Cigna and NEA will purchase, in aggregate, $750 million of convertible perpetual preferred stock (the “Series A Preferred”), with a purchase price of $1,000 per share. The Series A Preferred carries a 5.0% dividend, which will be payable in kind or in cash at the company’s election, and will be convertible into shares of the company’s common stock at an initial conversion price of approximately $4.55 per share, representing a 25% premium to the arithmetic average of the company’s daily volume-weighted average price over the trailing 10 trading day period ending on December 3, 2021.
“Cigna Ventures is committed to improving and expanding access to quality, affordable healthcare, and our investment in Bright Health Group aligns with our vision . We seek to be partners of choice and we look forward to exploring new ways that NeueHealth and Evernorth can potentially provide services to each other’s customers and clients.” – Tom Richards, head of Cigna Ventures.
“The investment from Cigna and NEA signifies continued conviction in Bright Health Group’s alignment model. We are excited about the partnership opportunities for both Bright Health Group and Cigna to bring affordable, personalized healthcare to all consumers.” – Mike Mikan, President and CEO of Bright Health Group.
The financing is expected to close in January of 2022, subject to customary closing conditions.