Amerigroup expects $394 million from notes

Amerigroup Corp. said it expects to net $394 million from a public offering of $400 million in senior unsecured notes.

The notes, which will be due in 2019, were priced Thursday to yield 7.5 percent. The offering is due to close Nov. 16.

The Virginia Beach-based health insurer said it will use part of the $394 million to repay principal on its 2 percent convertible notes that mature in May.

Amerigroup said it may use the balance for general corporate purposes, including acquisitions and expansion.

This could include using some proceeds to meet capital requirements related to its pending acquisition of a Medicaid managed-care provider in New York.