Amerigroup planning to raise $450 million

Amerigroup Corp., the Virginia Beach-based health insurer, said Tuesday it plans to raise $450 million from a public offering of senior unsecured notes and may use part of the proceeds for expansion. The new notes, to be offered through investment banking firm Goldman, Sachs & Co., will be due in 2019. A portion of the proceeds, Amerigroup said, will be used to repay notes that mature in May 2012.

Amerigroup said it also may use proceeds to meet capital requirements related to its acquisition of a major Medicaid managed-care provider in New York. Amerigroup said last week it agreed to buy the operating assets and contract rights of Health Plus, which serves New York City and part of Long Island.