By Paul A. Harris
Portland, Ore., May 22 – Molina Healthcare, Inc. priced a $330 million issue of eight-year senior notes (Ba3/BB) at par to yield 4 7/8% on Monday, according to a syndicate source.
The yield printed at the tight end of yield talk that had been set in the 5% area.
Timing was accelerated. Following its announcement on Monday morning, the deal had been expected to remain in the market until Tuesday.
SunTrust Robinson Humphrey was the left bookrunner. JP Morgan Securities LLC, Barclays, Morgan Stanley, BofA Merrill Lynch and Wells Fargo were the joint bookrunners.
The Long Beach, Calif. managed healthcare company plans to use the proceeds to refinance its 2044 convertible notes.
| Issuer: | Molina Healthcare, Inc.
|
| Amount: | $330 million
|
| Maturity: | June 15, 2025
|
| Securities: | Senior notes
|
| Left bookrunner: | SunTrust
|
| Joint bookrunners: | JP Morgan, Barclays, Morgan Stanley, BofA Merrill Lynch, Wells Fargo
|
| Co-manager: | MUFG
|
| Coupon: | 4 7/8%
|
| Price: | Par
|
| Yield: | 4 7/8%
|
| Spread: | 216 bps
|
| First call: | Make-whole call until June 15, 2025, then callable at 102.438
|
| Trade date: | May 22
|
| Settlement date: | June 6
|
| Ratings: | Moody’s: Ba3
|
| S&P: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 5% area
|
| Marketing: | Quick to market
|
|
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
