Apr 4 2011
Catalyst Health Solutions, Inc. (NASDAQ: CHSI) today announced that it plans to sell 5,500,000 shares of its common stock, subject to market and other conditions, of which 4,500,000 shares will be sold by the Company and 1,000,000 shares will be sold by one of its stockholders, Principal Holding Company, LLC, a subsidiary of Principal Financial Group, Inc., in an underwritten public offering pursuant to an automatic shelf registration statement on Form S-3 filed today with the Securities and Exchange Commission (the "SEC").
The underwriters will be granted a 30-day option to purchase up to an additional 825,000 shares from the selling stockholder. The Company will not receive any proceeds from the sale of shares of its common stock by the selling stockholder.
The joint book-running managers for this offering are Goldman, Sachs & Co. and Citi. SunTrust Robinson Humphrey, Inc. and Wells Fargo Securities, LLC are serving as joint lead managers for this offering.
The Company expects to use the net proceeds received from this offering to fund a portion of the approximately $525 million purchase price for the Company's previously announced acquisition of Walgreens Health Initiatives, Inc. ("WHI"), which is expected to close in the first half of 2011. Should the acquisition not be completed, the Company will use the net proceeds from this offering for general corporate purposes.
Source:
Catalyst Health Solutions, Inc.