By Paul A. Harris
Portland, Ore., Aug. 8 – WellCare Health Plans, Inc. priced an upsized $750 million issue of eight-year senior notes (Ba2/BB) at par to yield 5 3/8% on Wednesday, according to a market sources.
The deal was increased from $700 million.
The yield printed at the tight end of yield talk that was set in the 5½% area and inside initial guidance in the 5¾% area, sources said.
WellCare’s offer was halfway circled up by reverse inquiry and was five-times oversubscribed at the original size by Tuesday’s close, according to a trader who spotted the new 5 3/8% notes due 2026 at 101 bid, 101½ offered late Wednesday.
JP Morgan Securities LLC was the lead.
The Tampa, Fla.-based company plans to use the proceeds to help fund its acquisitions of Meridian Health Plan of Michigan, Inc., Meridian Health Plan of Illinois, Inc. and MeridianRx, and for general corporate purposes.
WellCare Healthcare provides government-sponsored managed care services, primarily through Medicaid, Medicare Advantage and Medicare Prescription Drug plans.
| Issuer: | WellCare Healthcare Plans, Inc.
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| Amount: | $750 million, increased from $700 million
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| Maturity: | Aug. 15, 2026
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| Securities: | Senior notes
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| Lead: | JP Morgan, SunTrust, BofA Merrill Lynch, MUFG, Goldman Sachs, US Bancorp, Whitney, Huntington
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| Coupon: | 5 3/8%
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| Price: | Par
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| Yield: | 5 3/8%
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| First call: | Aug. 15, 2021 at 104.031
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| Trade date: | Aug. 8
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| Settlement date: | Aug. 13
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| Ratings: | Moody's: Ba3
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| S&P: BB
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| Distribution: | Rule 144A for life
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| Price talk: | 5½% area
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| Marketing: | Roadshow
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