HealthSpring Inc. is in the process of raising at least $262 million by selling 7.5 million shares of common stock to the public.

HealthSpring, Nashville, Tenn. (NYSE:HS), may also raise another $40 million by selling 1.125 million additional shares to the offering underwriter.

HealthSpring, a company that runs Medicare Advantage managed care plans with about 300,000 enrollees, says it will use about half of the offering proceeds to pay off debts and about half for “general corporate purposes, which may include acquisitions of similar or complementary businesses.”

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