By Andrea Heisinger
New York, May 3 - Highmark, Inc. priced $600 million of notes (Baa2/A/BBB+) in two tranches on Tuesday, a source away from the sale said.
The $350 million of 4.75% 10-year notes priced at 99.596 to yield 4.801% with a spread of Treasuries plus 155 basis points. The notes priced at the tight end of guidance that was in the 160 bps area.
The notes have a make-whole call at 25 bps over Treasuries.
A $250 million tranche of 6.125% 30-year bonds priced at 99.345 to yield 6.173% with a spread of 180 bps over Treasuries. The bonds were sold at the tight end of talk that was in the 185 bps area over Treasuries.
The 30-year bonds have a make-whole call at 30 bps over Treasuries.
Both tranches feature a change-of-control put at 101%. They were sold under Rule 144A.
Bookrunners were J.P. Morgan Securities LLC, Merrill Lynch and PNC Capital Markets LLC.
Proceeds will be used for general corporate purposes.
The health insurance company is based in Pittsburgh.
| Issuer: | Highmark, Inc.
|
| Issue: | Notes
|
| Amount: | $600 million
|
| Bookrunners: | J.P. Morgan Securities LLC, Merrill Lynch, PNC Capital Markets LLC
|
| Distribution: | Rule 144A
|
| Change-of-control put: | 101%
|
| Trade date: | May 3
|
| Settlement date: | May 6
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: A
|
| Fitch: BBB+
|
|
|
| 10-year notes
|
| Amount: | $350 million
|
| Maturity: | May 15, 2021
|
| Coupon: | 4.75%
|
| Price: | 99.596
|
| Yield: | 4.801%
|
| Spread: | Treasuries plus 155 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Price talk: | 160 bps area
|
|
|
| 30-year bonds
|
| Amount: | $250 million
|
| Maturity: | May 15, 2041
|
| Coupon: | 6.125%
|
| Price: | 99.345
|
| Yield: | 6.173%
|
| Spread: | Treasuries plus 180 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
| Price talk: | 185 bps area
|
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