Completed September 2008
The New York Public Asset Fund (NYPAF) held 62% of WellChoice Inc. following the conversion of Empire Blue Cross/Blue Shield to a corporate entity. When WellChoice was later acquired by WellPoint Inc. in 2005, NYPAF received approximately $2 billion of WellPoint stock.
Advised NYPAF on the successful monetization of its WellPoint stake.
NYPAF’s objectives were to monetize the value of its holdings, protect the accumulated asset value of the WellPoint shares from potential equity market declines, and retain some upside from a continued position in the stock. With Blackstone’s assistance, NYPAF developed a long-term monetization strategy which resulted in a $500 million block sale of WellPoint stock, collared economics on $1.0 billion of WellPoint stock through equity-linked notes and opportunistic sales of the remaining WellPoint position.