By Andrea Heisinger
New York, Aug. 9 - WellPoint, Inc. priced an upsized $1 billion of notes (Baa1/A-/A-) in two tranches on Monday, a source away from the deal said.
The size was increased from $750 million.
A $700 million tranche of 4.35% 10-year notes priced at 99.855 to yield 4.368% with a spread of 155 basis points over Treasuries. The notes have a make-whole call of Treasuries plus 25 bps.
The tranche was talked in the range of 155 to 158 bps and priced at the tight end of that range.
A $300 million tranche of 5.8% 30-year notes sold at 98.892 to yield 5.879% with a spread of Treasuries plus 187.5 bps. The tranche has a make-whole call of Treasuries plus 30 bps.
The 30-year tranche was talked in the 190 bps area.
Both tranches feature a change-of-control put of 101%.
Bookrunners were Goldman Sachs & Co. Inc. and UBS Investment Bank. Passive bookrunners were Deutsche Bank Securities Inc. and Morgan Stanley & Co. Inc.
Proceeds are being used for working capital and general corporate purposes, including repayment of short- and long-term debt.
The health benefits company is based in Indianapolis.
| Issuer: | WellPoint, Inc.
|
| Issue: | Notes
|
| Amount: | $1 billion, increased from $750 million
|
| Bookrunners: | Goldman Sachs & Co. Inc., UBS Investment Bank (active), Deutsche Bank Securities Inc., Morgan Stanley & Co. Inc. (passive)
|
| Change-of-control put: | 101%
|
| Trade date: | Aug. 9
|
| Settlement date: | Aug. 12
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: A-
|
| Fitch: A-
|
|
|
| 10-year notes
|
| Amount: | $700 million
|
| Maturity: | Aug. 15, 2020
|
| Coupon: | 4.35%
|
| Price: | 99.855
|
| Yield: | 4.368%
|
| Spread: | Treasuries plus 155 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Price talk: | 155 to 158 bps
|
|
|
| 30-year bonds
|
| Amount: | $300 million
|
| Maturity: | Aug. 15, 2040
|
| Coupon: | 5.8%
|
| Price: | 98.892
|
| Yield: | 5.879%
|
| Spread: | Treasuries plus 187.5 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
| Price talk: | 190 bps area
|
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