By Andrea Heisinger
New York, June 5 - Express Scripts, Inc. gave terms for an upsized $2.5 billion of notes (Baa3/BBB/BBB) in three tranches priced late Thursday, according to an FWP filing with the Securities and Exchange Commission.
The issue was originally in two tranches, according to a 424B5 filing with the SEC Thursday.
The $1 billion of 5.25% three-year notes priced at 99.922 to yield 5.278%, or Treasuries plus 375 basis points.
The $1 billion of 6.25% five-year notes sold at 99.574 to yield 6.35%, or Treasuries plus 375 bps.
A $500 million tranche of 7.25% 10-year notes priced at 99.332 to yield 7.345%, or Treasuries plus 362.5 bps.
Both the three- and five-year tranches were talked at the 387.5 bps area, the informed source said, and came at the tight end of the margin of plus or minus 12.5 bps. The 10-year notes were talked at the 375 bps area, also plus or minus 12.5 bps.
The notes feature a change-of-control put of 101% and all have make-whole calls at Treasuries plus 50 bps.
Bookrunners were Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and J.P. Morgan Securities Inc.
Co-managers were Calyon Securities (USA) Inc., Deutsche Bank Securities Inc., Mitsubishi UFJ Securities (USA) Inc., RBS Securities Inc., Scotia Capital (USA) Inc., SunTrust Robinson Humphrey Inc. and Wachovia Capital Markets LLC.
The company is concurrently selling 23 million shares of common stock.
Proceeds, along with those from the stock offering, will be used to finance a portion of the consideration for the acquisition of WellPoint, Inc.
The pharmacy benefit management company is based in St. Louis.
| Issuer: | Express Scripts, Inc.
|
| Issue: | Senior notes
|
| Total amount: | $2.5 billion
|
| Bookrunners: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities Inc.
|
| Co-managers: | Calyon Securities (USA) Inc., Deutsche Bank Securities Inc., Mitsubishi UFJ Securities (USA) Inc., RBS Securities Inc., Scotia Capital (USA) Inc., SunTrust Robinson Humphrey Inc., Wachovia Capital Markets LLC
|
| Change-of-control put: | 101%
|
| Trade date: | June 3
|
| Settlement date: | June 9
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
|
|
| Three-year notes
|
| Amount: | $1 billion
|
| Maturity: | June 15, 2012
|
| Coupon: | 5.25%
|
| Price: | 99.922
|
| Yield: | 5.278%
|
| Spread: | Treasuries plus 375 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Price talk: | 387.5 bps area, plus or minus 12.5 bps
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | June 15, 2014
|
| Coupon: | 6.25%
|
| Price: | 99.574
|
| Yield: | 6.35%
|
| Spread: | Treasuries plus 375 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Price talk: | Treasuries plus 387.5 bps area, plus or minus 12.5 bps
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | June 15, 2019
|
| Coupon: | 7.25%
|
| Price: | 99.332
|
| Yield: | 7.345%
|
| Spread: | Treasuries plus 362.5 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Price talk: | 375 bps, plus or minus 12.5 bps
|
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