BrightSpring Health Services Inc., a community-based health-care services provider backed by KKR & Co., is aiming to raise up to $1.36 billion through an initial public offering (IPO) and a sale of convertible securities, according to sources familiar with the matter. The Louisville, Kentucky-based company plans to market 53.3 million shares at a price range of $15 to $18 per share, aiming to generate around $960 million at the top end of the range. Concurrently, BrightSpring is also seeking to raise $400 million through the sale of 8 million tangible equity units at a fixed price of $50 each.
KKR & Co., a private equity firm, invested in BrightSpring back in 2019, and the IPO marks the potential beginning of KKR’s exit from the health-care services provider. BrightSpring had initially filed for an IPO in October 2021 but withdrew the filing due to market conditions. The company refiled on January 2 of the current year, with plans to file its latest plans with the US Securities and Exchange Commission and commence marketing the shares as early as Wednesday, according to sources.
The IPO market is displaying early signs of recovery after experiencing a slow year, with BrightSpring joining the ranks of companies seeking to capitalize on improved market conditions. The company intends to grant underwriters the option to purchase an additional 15% of the base deal for both the common stock and tangible equity unit offerings.
Goldman Sachs Group Inc., KKR, Jefferies Financial Group Inc., Morgan Stanley, UBS Group AG, Bank of America Corp., Guggenheim Securities, and Leerink Partners are leading the offering. BrightSpring plans for its shares to trade on the Nasdaq Global Select Market under the symbol BTSG.
The proceeds from the IPO will be utilized by BrightSpring to repay debt and for general corporate purposes, as outlined in its preliminary listing document.
