By Paul A. Harris
Portland, Ore., Nov. 1 – Molina Healthcare, Inc. priced a $750 million issue of 10.5-year senior bullet notes (Ba3/BB-) at par to yield 3 7/8% in a Monday drive-by, according to market sources.
The yield printed at the tight end of yield talk in the 4% area. Initial guidance was in the low-4% area.
The deal was three-times oversubscribed at talk, according to a bond trader who added that there had been some reticence among investors at taking down a 10-year bullet priced below 4%, with some placing orders with limits at 4%.
Late Monday, the new Molina Healthcare 3 7/8% senior notes due May 2032 were seen at 99¾ bid, the trader said.
Truist Securities Inc. was the left bookrunner.
Barclays, BofA Securities Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, MUFG, Wells Fargo Securities LLC were joint bookrunners.
The Long Beach, Calif.-based managed care services provider plans to use the proceeds to redeem its 5 3/8% senior notes due 2022 and for general corporate purposes.
| Issuer: | Molina Healthcare, Inc.
|
| Amount: | $750 million
|
| Maturity: | May 15, 2032
|
| Securities: | Senior notes
|
| Left bookrunners: | Truist Securities Inc.
|
| Joint bookrunners: | Barclays, BofA Securities Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, MUFG, Wells Fargo Securities LLC
|
| Coupon: | 3 7/8%
|
| Price: | Par
|
| Yield: | 3 7/8%
|
| Call protection: | Par call 90 days prior to maturity, otherwise non-callable
|
| Trade date: | Nov. 1
|
| Settlement date: | Nov. 16
|
| Ratings: | Moody's: Ba3
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 4% area
|
| Marketing: | Drive-by
|
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