Published on 5/27/2015 in the Prospect News High Yield Daily.
New Issue: WellCare prices $300 million tap of 5¾% notes due 2020 at 104.5 to yield 4.803%
By Paul A. Harris
Portland, Ore., May 27 – WellCare Health Plans, Inc. priced a $300 million add-on to its 5¾% senior notes due Nov. 15, 2020 (Ba2/BB) at 104.5 to yield 4.803% on Wednesday, according to an informed source.
The reoffer price came at the rich end of the 104.25 to 104.5 price talk.
Goldman Sachs & Co. was the left bookrunner. J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC were the joint bookrunners.
The Tampa, Fla.-based Medicaid managed care provider plans to use the proceeds for general corporate purposes, including organic growth and working capital.
| Issuer: | WellCare Health Plans, Inc.
|
| Face amount: | $300 million
|
| Proceeds: | $314 million
|
| Maturity: | Nov. 15, 2020
|
| Security description: | Add-on to 5¾% senior notes due Nov. 15, 2020
|
| Left bookrunner: | Goldman Sachs & Co.
|
| Joint bookrunners: | J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC
|
| Co-managers: | BofA Merrill Lynch, MUFG, U.S. Bancorp Investments Inc.
|
| Coupon: | 5¾%
|
| Price: | 104.5
|
| Yield: | 4.803%
|
| First call: | Nov. 15, 2016 at 102.875
|
| Trade date: | May 27
|
| Settlement date: | June 1
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: BB
|
| Distribution: | SEC registered
|
| Price talk: | 104.25 to 104.5
|
| Marketing: | Quick to market
|
| Original issue: | $600 million priced at par in November 2013
|
| Total issue size: | $900 million
|
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