Benzinga | Dec 6, 2021 05:21PM EST

Bright Health Group Reports $750M Capital Raises

New financing from Cigna and long-term shareholder New Enterprise Associates affirms conviction in Bright Health Group's differentiated alignment model

MINNEAPOLIS--(BUSINESS WIRE)-- Bright Health Group, Inc. ("Bright Health Group" or the "Company") (NYSE:BHG), the first technology-enabled fully aligned system of care, built for healthcare's consumer retail market, today announced a $750 million financing to support continued growth. The financing includes a strategic investment by Cigna Ventures, the corporate venture capital partner and wholly owned indirect subsidiary of Cigna Corporation ("Cigna"), as a new investor in the company. The Company's largest existing shareholder, New Enterprise Associates ("NEA"), will also participate as a co-investor. The investment from these two leading institutions demonstrates support for the expansion of Bright Health Group's differentiated alignment model.

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 brings deep healthcare expertise to complement Bright Health Group's mission. "Cigna Ventures is committed to improving and expanding access to quality, affordable healthcare, and our investment in Bright Health Group aligns with our vision," said Tom Richards, head of Cigna Ventures. "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." The investment is also backed and partially funded through Cigna.

"The investment from Cigna and NEA signifies continued conviction in Bright Health Group's alignment model," said Mike Mikan, President and CEO of Bright Health Group. "We are excited about the partnership opportunities for both Bright Health Group and Cigna to bring affordable, personalized healthcare to all consumers."

The financing is expected to close in January of 2022, subject to customary closing conditions. The financing does not require additional regulatory approvals. More information regarding the financing and the key terms of the Series A Preferred will be included in a Form 8-K to be filed by Bright Health Group with the Securities and Exchange Commission.