By Paul A. Harris
St. Louis, May 29 - Health Net, Inc. priced a $100 million add-on to its 6 3/8% senior notes due June 1, 2017 (Ba2/BB+) at a 168 basis point spread to Treasuries on Tuesday, according to an informed source, who added that there had been no official price talk.
The issue price was 98.637, resulting in a yield of 6.562%.
Banc of America Securities LLC and Credit Suisse ran the books for the Securities and Exchange Commission-registered add-on.
Proceeds will be used to pay down the company's $700 million revolver, which the company had drawn upon in order to repay its $200 million bridge loan that matured in March.
The original $300 million issue priced at Treasuries plus 170 bps on May 15. The dollar price of the original issue was 99.769. The yield was 6.406%.
The issuer is a Woodland Hills, Calif., managed health care company.
| Issuer: | Health Net, Inc.
|
| Amount: | $100 million
|
| Maturity: | June 1, 2017
|
| Security description: | Add-on to 6 3/8% senior notes
|
| Bookrunners: | Banc of America Securities LLC, Credit Suisse
|
| Coupon: | 6 3/8%
|
| Price: | 98.637
|
| Yield: | 6.562%
|
| Spread: | 168 bps
|
| Call protection: | Non-callable with a Treasuries plus 30 bps make-whole provision
|
| Trade date: | May 29
|
| Settlement date: | May 31, with accrued interest
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB+
|
| Distribution: | Registered
|
| Price talk: | None
|
| Original issue: | $300 million priced at Treasuries plus 170 bps on May 15, 2007 (99.769 to yield 6.406%)
|
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