Bright Health Group (BHG) Inc. announced on Friday that it has received all necessary regulatory approvals to sell its California Medicare Advantage business to Molina Healthcare in an acquisition which is expected to close in early January.
In June, Molina agreed to purchase BHG’s California Medicare Advantage business for a total consideration of $600 million.
Bright Health stated that it intends to use proceeds from the sale to repay debt and improve its capital position.
The healthcare company also reported that it has entered into an amendment to its credit facility with JP Morgan that will reduce the final repayment amount by about $30 million to approximately $298 million, which will eliminate its secured debt.
Shares of Bright Health fell 8% to $7 in early Tuesday trading.