Magellan Health prices $400 million; September supply strong; credit spreads improve

By Cristal Cody

Tupelo, Miss., Sept. 15 – Magellan Health, Inc. came to the primary market on Friday with a $400 million offering of seven-year senior notes.

Deal action has been strong so far in September with nearly $50 billion of bonds priced in the previous week and more than $38 billion of investment-grade supply this week.

The Markit CDX North American Investment Grade 28 index closed less than 1 basis point tighter at a spread of 56 bps.

Magellan Health taps primary

Magellan Health priced $400 million of 4.4% seven-year senior notes (/BBB-/) in the offering at a spread of 240 bps over Treasuries, according to an FWP filing with the Securities and Exchange Commission.

The notes priced at 99.809 to yield 4.432%.

J.P. Morgan Securities LLC, MUFG, Wells Fargo Securities LLC, U.S. Bancorp Investments, Inc. and BBVA Securities Inc. were the bookrunners.

The Scottsdale, Ariz., health care management business will use the proceeds for working capital and general corporate purposes and the refinancing of a credit agreement.

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