Bright Health gets agreement to reduce final repayment by $30 million

By Mary Katherine Stinson

Lexington, Ky., Dec. 29 – Bright Health Group, Inc. amended its credit facility with JP Morgan, reducing the final repayment amount by about $30 million, according to an 8-K filing with the Securities and Exchange Commission.

The reduction makes the final repayment approximately $298 million, which is expected to be made concurrently with the closing of the sale of the company’s California Medicare Advantage business.

With the payment, Bright Health’s secured debt will be eliminated.

The company expects the sale to close on or about Jan. 1.

Upon closing and the repayment of its secured debt, Bright Health said in the press release that it expects to begin 2024 with approximately $90 million of unregulated cash and approximately $155 million in excess cash surplus after reserving for expected medical costs and other anticipated wind-down expenses in its discontinued insurance business. Additionally, subject to adjustments and the conditions in the sale agreement, the company expects to receive an additional $110 million from escrow.

Based in Minneapolis, Bright Health is a technology-enabled, fully aligned system of care built for health care's consumer retail market.

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