PacifiCare Expects Stock Offering to Raise $200 Million
- Share via
CYPRESS — PacifiCare Health Systems Inc., building a war chest for acquisitions, said Wednesday that it plans to raise as much as $200 million in a public offering.
The managed health-care company will sell 3 million shares of its non-voting Class B stock and its largest shareholder, UniHealth Inc., will sell an additional 1.5 million shares under the proposed offering filed Wednesday with the Securities and Exchange Commission.
At Wednesday’s closing price of $69.75 a share, PacifiCare would raise $209 million before expenses. UniHealth in Burbank would raise an additional $105 million for itself.
PacifiCare will spend $83 million of the proceeds to pay off a bank loan and use the remainder for operating expenses and acquisitions.
“As an everyday matter of doing business, we run across opportunities to look at companies of all shapes and sizes to acquire or affiliate with,” said spokesman David K. Erickson. “Raising the proceeds gives us an opportunity to participate in that process more ably.”
PacifiCare spent about $200 million in the last 18 months, he said, to acquire seven companies and grow to its current size. The Cypress-based health provider serves 1.5 million members in California, Florida, Oklahoma, Oregon, Texas and Washington with managed care products and services.
Erickson said that, if the offering passes SEC muster quickly, the company could be issuing the stock by the end of March.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
