Published on 3/8/2017 in the Prospect News High Yield Daily.
New Issue: WellCare prices $1.2 billion eight-year notes at par to yield 5¼%
By Paul A. Harris
Portland, Ore., March 8 – WellCare Health Plans, Inc. priced a $1.2 billion issue of eight-year senior notes (Ba2/BB) at par to yield 5¼% on Wednesday, according to market sources.
The yield printed at the wide end of 5% to 5¼% yield talk. Initial guidance was in the 5% area.
J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, Goldman Sachs & Co., BofA Merrill Lynch and MUFG were the joint bookrunners for the public offer.
The Tampa, Fla.-based provider of government-sponsored managed care services plans to use the proceeds to redeem or repay $900 million of its 5¾% senior notes due 2020, to repay amounts outstanding from time to time under its revolving credit facility, and, thereafter, for general corporate purposes, including organic growth and working capital.
| Issuer: | WellCare Health Plans, Inc.
|
| Amount: | $1.2 billion
|
| Maturity: | April 1, 2025
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, Goldman Sachs & Co., BofA Merrill Lynch, MUFG
|
| Co-manager: | U.S. Bancorp Investments Inc.
|
| Coupon: | 5¼%
|
| Price: | Par
|
| Yield: | 5¼%
|
| Spread: | 278 bps
|
| Call protection: | Three years
|
| Trade date: | March 8
|
| Settlement date: | March 22
|
| Ratings: | Moody's: Ba2
|
| S&P: BB
|
| Distribution: | SEC registered
|
| Price talk: | 5% to 5¼%
|
| Marketing: | Quick to market
|
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