Anthem plans $900 million equity units at 5.25%-5.75%, up 25%-30%

By Rebecca Melvin

New York, May 5 – Anthem Inc. plans to price $900 million of convertible equity units at $50 each after the market close Wednesday, which were talked to yield 5.25% to 5.75% with an initial conversion premium of 25% to 30%, according to market sources.

The registered deal has a $135 million greenshoe and was being sold via Credit Suisse Securities (USA) LLC and BofA Merrill Lynch as joint bookrunners.

The units are non-callable and mature in three years. They have full dividend protection via a conversion rate adjustment above $0.625 per quarter. There is a takeout put, including make-whole shares.

Proceeds are expected to be used for general corporate purposes, including the repurchase of a portion of Anthem’s outstanding 2.75% convertibles.

Indianapolis-based Anthem is a health benefits company.

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