By Andrea Heisinger
New York, Aug. 10 - WellPoint, Inc. priced $1.1 billion of notes (Baa1/A-/A-) in two tranches on Wednesday, said a source who worked on the trade.
A $400 million tranche of 2.375% notes due 2017 was priced at 99.53 to yield 2.467% with a spread of Treasuries plus 155 basis points. The tranche has a make-whole call at Treasuries plus 25 bps.
The tranche priced in the middle of the 150 bps to 160 bps guidance range, the source said. He added that the securities priced flat because it was a long five-year maturity.
The $700 million of 3.7%10-year notes sold at 99.884 to yield 3.714% with a spread of 160 bps over Treasuries. They have a make-whole call at Treasuries plus 30 bps until May 15, 2021, and then are callable at par.
This tranche priced in line with guidance in the 160 bps area.
There is a change-of-control put at 101%.
Active bookrunners were Citigroup Global Markets Inc. and UBS Securities LLC. Passive bookrunners were Barclays Capital Inc., Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC.
Proceeds will be used for working capital and general corporate purposes, including repayment of long-term and short-term debt.
The health benefits company is based in Indianapolis.
| Issuer: | WellPoint, Inc.
|
| Issue: | Notes
|
| Amount: | $1.1 billion
|
| Bookrunners: | Citigroup Global Markets Inc., UBS Securities LLC (active), Barclays Capital Inc., Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC (passive)
|
| Change-of-control put: | 101%
|
| Trade date: | Aug. 10
|
| Settlement date: | Aug. 15
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: A-
|
| Fitch: A-
|
|
|
| Notes due 2017
|
| Amount: | $400 million
|
| Maturity: | Feb. 15, 2017
|
| Coupon: | 2.375%
|
| Price: | 99.53
|
| Yield: | 2.467%
|
| Spread: | Treasuries plus 155 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Price talk: | 150 to 160 bps
|
|
|
| 10-year notes
|
| Amount: | $700 million
|
| Maturity: | Aug. 15, 2021
|
| Coupon: | 3.7%
|
| Price: | 99.884
|
| Yield: | 3.714%
|
| Spread: | Treasuries plus 160 bps
|
| Call: | Make-whole at Treasuries plus 30 bps until May 15, 2021, and after at par
|
| Price talk: | 160 bps area
|
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