By Paul A. Harris
Portland, Ore., Jan. 12 - Amerigroup Corp. priced an upsized $75 million add-on to its 7½% senior notes due Nov. 15, 2019 at 103.75 to yield 6.87% on Thursday, according to a prospectus the company filed with the Securities and Exchange Commission.
The reoffer price came on top of price talk, according to a market source.
Goldman Sachs & Co. ran the books for the quick-to-market add-on, which was upsized from $50 million.
Proceeds will be used for general corporate purposes, including acquisitions and/or business development opportunities which may include funding growth capital. Pending such use, the proceeds may be invested temporarily in short-term interest-bearing, investment-grade securities or similar assets.
The issuer is a Virginia Beach, Va.-based managed health care company.
The original $400 million issue, which was downsized from $450 million, priced at par on Nov. 10, 2011.
| Issuer: | Amerigroup Corp.
|
| Amount: | $75 million, increased from $50 million
|
| Maturity: | Nov. 15, 2019
|
| Security description: | Add-on to senior notes due Nov. 15, 2019
|
| Bookrunner: | Goldman Sachs & Co.
|
| Coupon: | 7½%
|
| Price: | 103.75
|
| Yield: | 6.87%
|
| Spread: | 538 bps
|
| Call features: | Make whole call at Treasuries plus 50 bps until Nov. 15, 2015, then callable at 103.75, 101.875, par on and after Nov. 15, 2017
|
| Equity clawback: | 35% at 107.5 until Nov. 15, 2014
|
| Trade date: | Jan. 12
|
| Settlement date: | Jan. 18 with accrued interest
|
| Distribution: | SEC registered
|
| Price talk: | 103.75
|
| Marketing: | Quick to market
|
| Original issue: | $400 million priced at par on Nov. 10, 2011, downsized from $450 million
|
| Total issue size: | $450 million
|
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