WellCare Announces Closing of Common Stock Offering

By a News Reporter-Staff News Editor at Managed Care Weekly Digest -- WellCare Health Plans, Inc. (NYSE: WCG) announced that on August 10, 2018 it closed an offering of 5,207,547 shares of its common stock at a public offering price of $265.00 per share, which includes the exercise in full by the underwriters of their option to purchase up to an additional 679,245 shares of common stock in the offering. The proceeds to WellCare from the offering were approximately $1.38 billion, before deducting underwriting discounts, commissions and offering expenses (see also WellCare Health Plans Inc.).

WellCare expects to use the net proceeds from the offering 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, a pharmacy benefit manager (collectively, "Meridian") to pay related fees and expenses and for general corporate purposes. If the acquisition is not completed for any reason, WellCare will use the net proceeds from the offering for general corporate purposes.

Keywords for this news article include: Business, Managed Care, Health and Medicine, WellCare Health Plans Inc.

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