WellCare talks $600 million seven-year notes to yield in 5 7/8% area

By Paul A. Harris

Portland, Ore., Nov. 7 - WellCare Healthplans Inc. talked its $600 million offering of seven-year senior notes (existing ratings Ba2/BB) with a yield in the 5 7/8% area, market sources said on Thursday.

Books close at 10 a.m. ET on Friday, and the deal is set to price thereafter.

Goldman Sachs & Co., J.P. Morgan Securities LLC and SunTrust Robinson Humphrey Inc. are the joint bookrunners.

Barclays, BofA Merrill Lynch, Mitsubishi UFJ Securities (USA) Inc. and Wells Fargo Securities LLC are the co-managers.

The notes come with three years of call protection.

The Tampa, Fla.-based provider of managed care health plans intends to use the proceeds to repay and terminate its existing senior secured credit agreement and for general corporate purposes, including organic growth opportunities and potential acquisitions.

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