Centene sets price talk in $2.27 billion two-part notes offering; books close Thursday afternoon

By Paul A. Harris

Portland, Ore., Jan. 28 – Centene Corp. set price talk for its $2.27 billion two-part offering of senior notes (expected ratings Ba2/BB), a syndicate source said on Thursday.

The deal features five-year notes, which come with two years of call protection, talked to yield 5¾% to 6%.

The offering also features eight-year notes, which come with three years of call protection, talked to yield 6¼% to 6½%.

Tranche sizes remain to be determined.

Books close at 2 p.m. ET on Thursday, and the deal is set to price thereafter.

Wells Fargo Securities LLC is the left bookrunner for the Rule 144A and Regulation S with registration rights offering. Barclays, Citigroup Global Markets Inc. and SunTrust Robinson Humphrey Inc. are the joint bookrunners.

Fifth Third Bank, Regions and U.S. Bancorp Investments Inc. are the senior co-managers.

Morgan Stanley & Co. LLC, Allen and Evercore are the co-managers.

The St. Louis-based managed care and specialty health care services provider plans to use the proceeds to fund the acquisition of Health Net Inc. and to refinance certain debt.

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