Insurer Conseco Inc. said Monday it is offering 45 million shares of common stock to help pay down debt and for corporate purposes.
The company plans to use $150 million plus half of the net proceeds of more than $200 million to repay debt. The rest of the net proceeds will go to general corporate purposes, Conseco said.
The company plans to grant the underwriters a 30-day option to buy up to an additional 4.5 million shares.
Morgan Stanley & Co. Inc. is acting as bookrunning manager and Credit Suisse Securities, FBR Capital Markets & Co. and Macquarie Capital Inc. are acting as co-managers.
Conseco shares rose 19 cents, or 4 percent, to close at $4.94 on Monday.