By Andrea Heisinger
New York, Feb. 2 - WellPoint, Inc. priced $1 billion of notes (Baa1/A-/A-) Monday in two tranches, market sources said.
The $400 million of 6% five-year notes priced at 99.809 to yield 6.044%, or Treasuries plus 432 basis points.
The $600 million of 7% 10-year notes priced at 99.840 to yield 7.022%, or Treasuries plus 432 bps.
Both tranches have a make-whole call of Treasuries plus 50 bps.
The notes feature a change-of-control put of 101%.
The deal priced tighter than talk, a source said, and was "definitely oversubscribed."
Active bookrunners were Banc of America Securities LLC and Deutsche Bank Securities Inc.
Passive bookrunners for the five-year notes were SunTrust Robinson Humphrey and UBS Investment Bank. Goldman Sachs & Co. and Credit Suisse Securities Inc. were passive books for the 10-year notes.
Proceeds will be used for working capital and other general corporate purposes, including repayment of short-term debt and the repurchase of common stock.
The health benefits company is based in Indianapolis.
| Issuer: | WellPoint, Inc.
|
| Issue: | Notes
|
| Total amount: | $1 billion
|
| Bookrunners: | Banc of America Securities LLC, Deutsche Bank Securities Inc. (active)
|
| Change-of-control put: | 101%
|
| Trade date: | Feb. 2
|
| Settlement date: | Feb. 5
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: A-
|
| Fitch: A-
|
|
|
| Five-year notes
|
| Amount: | $400 million
|
| Maturity: | Feb. 15, 2014
|
| Bookrunners: | SunTrust Robinson Humphrey, UBS Investment Bank (passive)
|
| Coupon: | 6%
|
| Price: | 99.809
|
| Yield: | 6.044%
|
| Spread: | Treasuries plus 432 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
|
|
| 10-year notes
|
| Amount: | $600 million
|
| Maturity: | Feb. 15, 2019
|
| Bookrunners: | Goldman Sachs & Co., Credit Suisse Securities (passive)
|
| Coupon: | 7%
|
| Price: | 99.840
|
| Yield: | 7.022%
|
| Spread: | Treasuries plus 432 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
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