By Paul A. Harris
Portland, Ore., Nov. 10 - Amerigroup Corp. priced a downsized $400 million issue of eight-year senior notes (Ba3/BB+/) at par to yield 7½% on Thursday, according to an informed source.
The yield printed 37.5 basis points beyond the wide end of price talk, which had been set in the 7% area.
Goldman Sachs & Co. was the bookrunner for the issue, which was downsized from $450 million.
The Virginia Beach, Va.-based managed health care company plans to use the proceeds to prefund its existing convertible notes and for general corporate purposes.
| Issuer: | Amerigroup Corp.
|
| Amount: | $400 million, decreased from $450 million
|
| Maturity: | Nov. 15, 2019
|
| Securities: | Senior notes
|
| Bookrunner: | Goldman Sachs & Co.
|
| Coupon: | 7½%
|
| Price: | Par
|
| Yield: | 7½%
|
| Call protection: | Four years
|
| Traded date: | Nov. 10
|
| Settlement date: | Nov. 16
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB+
|
| Distribution: | SEC registered
|
| Price talk: | 7% area
|
| Marketing: | Roadshow
|
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