Anthem $200 mln mandatory convertibles talked 6.0-6.5% yield, up 18-22%

By Ronda Fears

Nashville, Tenn., Oct. 9 - Price talk on the Anthem Inc. $200 million of mandatory convertibles emerged Tuesday putting the yield between 6.0% and 6.5% with an 18% to 22% initial conversion premium. The Indianapolis-based firm, best known for Blue Cross & Blue Shield insurance, is demutualizing and is also selling 28.6 million shares of common stock in a range of $33 to $37 each. Goldman Sachs is lead manager of the offerings, which are scheduled to price Oct. 29.

There is a $30 million greenshoe available on the convertible offering. The three-year converts will be non-callable.

Proceeds are earmarked for the demutualization of Anthem, for which the company projects it will need $1 billion. End

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