Centene driving by with $2.2 billion split-rated 10-year bullet; initial guidance high 2% area

By Paul A. Harris

Portland, Ore., Feb. 10 – Centene Corp. plans to price a $2.2 billion public offering of split-rated 10-year senior bullet notes (Ba1/BBB-/BB+) in a Wednesday drive-by trailing a mid-morning conference call with investors, according to market sources.

Initial guidance has the notes coming to yield in the high 2% area, a high-yield bond trader said.

Active bookrunner BofA Securities Inc. will bill and deliver. Barclays is also an active bookrunner. J.P. Morgan Securities LLC, Truist Securities Inc. and Wells Fargo Securities LLC are joint bookrunners.

Fifth Third Securities Inc., Regions Securities LLC, U.S. Bancorp Investments Inc., MUFG, BMO Capital Markets Corp., PNC Capital Markets LLC, CIBC World Markets Corp. and Stifel Nicolaus & Co. Inc. are the co-managers.

The notes feature a par call three months prior to maturity but are otherwise non-callable.

The St. Louis-based health care company plans to use the proceeds plus cash on hand to fund the tender and/or redemption of its 4¾% notes due 2025.

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