Centene driving by with $1.8 billion seven-year bullet, initial guidance in high-2% area

By Paul A. Harris

Portland, Ore., June 24 – Centene Corp. plans to price a split-rated $1.8 billion public offering of seven-year senior bullet notes (Ba1/BBB-/BB+) in a Thursday drive-by trailing a conference call with investors, according to market sources.

Initial guidance has the deal coming to yield in the high-2% area.

The notes have a make-whole call and a par call.

J.P. Morgan Securities LLC, Barclays, BofA Securities Inc., Truist Securities Inc. and Wells Fargo Securities LLC are the joint bookrunners.

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

The St. Louis-based health care company plans to use the proceeds to help fund the cash portion of its acquisition of Magellan Health Inc. If the acquisition is not completed Centene expects to use the proceeds for debt repayment and general corporate purposes.

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