By Andrea Heisinger
New York, May 2 - WellPoint, Inc. sold $1.75 billion of notes (Baa1/A-/A-) in two parts on Wednesday, a source away from the trade said.
The $850 million of 3.125% 10-year notes sold at 99.488 to yield 3.185% with a spread of Treasuries plus 127 basis points. There's a make-whole call at Treasuries plus 20 bps.
A $900 million tranche of 4.625% 30-year bonds sold at 99.292 to yield 4.669% with a spread of 157 bps over Treasuries. The tranche has a make-whole call at 25 bps over Treasuries.
The notes feature a change-of-control put at 101%.
Bookrunners were Bank of America Merrill Lynch and Deutsche Bank Securities Inc.
Proceeds will be used for working capital and general corporate purposes, including repayment of short-term and long-term debt.
The health benefits company is based in Indianapolis.
| Issuer: | WellPoint, Inc.
|
| Issue: | Notes
|
| Amount: | $1.75 billion
|
| Bookrunners: | Bank of America Merrill Lynch, Deutsche Bank Securities Inc.
|
| Change-of-control put: | 101%
|
| Trade date: | May 2
|
| Settlement date: | May 7
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: A-
|
| Fitch: A-
|
|
|
| 10-year notes
|
| Amount: | $850 million
|
| Maturity: | May 15, 2022
|
| Coupon: | 3.125%
|
| Price: | 99.488
|
| Yield: | 3.185%
|
| Spread: | Treasuries plus 127 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
|
|
| 30-year bonds
|
| Amount: | $900 million
|
| Maturity: | May 15, 2042
|
| Coupon: | 4.625%
|
| Price: | 99.292
|
| Yield: | 4.669%
|
| Spread: | Treasuries plus 157 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
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