WellCare plans $300 million revolver at Libor plus 150-225 bps

By Sara Rosenberg

New York, Nov. 5 - WellCare Health Plans Inc. plans on getting a new up to $300 million five-year senior unsecured revolving credit facility that is expected to carry pricing ranging from Libor plus 150 basis points to 225 bps and an unused fee ranging from 25 bps to 37.5 bps, based on leverage, according to a 424B5 recently filed with the Securities and Exchange Commission.

Covenants include a maximum cash flow leverage ratio of 3 times, a minimum fixed charge coverage ratio of 3 times and a minimum level of statutory net worth for regulated subsidiaries.

The revolver has a $75 million accordion feature.

The company expects to get the new revolver in connection with the repayment and termination of its existing senior secured credit facility with proceeds from a $600 million senior notes offering.

Remaining proceeds from the notes will be used for general corporate purposes, including organic growth opportunities and potential acquisitions.

WellCare is a Tampa, Fla.-based provider of managed care services targeted to government-sponsored health care programs, focusing on Medicaid and Medicare.

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