Diversified Healthcare Financing Company Bright Health Group Secures $750 Million

By Noah Long ● Dec 14, 2021
  • Bright Health Group announced recently that it raised a $750 million round of funding. These are the details.

Bright Health Group — a technology-enabled fully aligned system of care built for healthcare’s consumer retail market — announced a $750 million financing to support continued growth. This funding round includes a strategic investment by Cigna Ventures, the corporate venture capital partner, and a wholly-owned indirect subsidiary of Cigna Corporation as a new investor in the company. The company’s largest existing shareholder New Enterprise Associates (NEA) will also participate as a co-investor. And 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 deal, 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.

The funding is expected to close in January of 2022, subject to customary closing conditions. And the funding does not require additional regulatory approvals.

KEY QUOTES:

“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.” The investment is also backed and partially funded through Cigna.”

— 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