By Andrea Heisinger
New York, Sept. 5 - Wellpoint, Inc. sold $3.25 billion of bonds (Baa2/A-/BBB+) in four maturities on Wednesday, a source close to the trade said.
The size was larger than talk of $2 billion.
A $625 million tranche of 1.25% three-year notes priced at 99.959 to yield 1.264% with a spread of Treasuries plus 95 basis points. This was well below talk in the 125 bps area.
A $625 million tranche of 1.875% notes due 2018 was sold at 99.772 to yield 1.919% with a spread of 130 bps over Treasuries. The notes also priced tighter than guidance in the 155 bps area.
A $1 billion tranche of 3.3% notes due 2023 was priced at 99.663 to yield 3.337% with a spread of 175 bps over Treasuries. The tranche sold tighter than talk in the 200 bps area.
There was $1 billion of 4.65% bonds due 2043 sold at 99.421 to yield 4.684% with a spread of 200 bps over Treasuries. The bonds were priced lower than talk in the 220 bps area.
All of the notes feature a change-of-control put at 101%.
Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. were the bookrunners.
Proceeds will be used to pay a portion of the purchase price for the acquisition of Amerigroup and for general corporate purposes.
There is a mandatory call at 101 if the acquisition is not done on or before Sept. 9, 2013.
The health benefits company is based in Indianapolis.
| Issuer: | Wellpoint Inc.
|
| Issue: | Senior notes
|
| Amount: | $3.25 billion
|
| Bookrunners: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc.
|
| Mandatory call: | At 101 if Amerigroup acquisition not done by Sept. 9, 2013
|
| Change-of-control put: | 101%
|
| Trade date: | Sept. 5
|
| Settlement date: | Sept. 10
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: A-
|
| Fitch: BBB+
|
|
|
| Three-year notes
|
| Amount: | $625 million
|
| Maturity: | Sept. 10, 2015
|
| Coupon: | 1.25%
|
| Price: | 99.959
|
| Yield: | 1.264%
|
| Spread: | Treasuries plus 95 bps
|
| Price talk: | 125 bps area
|
|
|
| Notes due 2018
|
| Amount: | $625 million
|
| Maturity: | Jan. 15, 2018
|
| Coupon: | 1.875%
|
| Price: | 99.772
|
| Yield: | 1.919%
|
| Spread: | Treasuries plus 130 bps
|
| Price talk: | 155 bps area
|
|
|
| Notes due 2023
|
| Amount: | $1 billion
|
| Maturity: | Jan. 15, 2023
|
| Coupon: | 3.3%
|
| Price: | 99.663
|
| Yield: | 3.337%
|
| Spread: | Treasuries plus 175 bps
|
| Price talk: | 200 bps area
|
|
|
| Notes due 2043
|
| Amount: | $1 billion
|
| Maturity: | Jan. 15, 2043
|
| Coupon: | 4.65%
|
| Price: | 99.421
|
| Yield: | 4.684%
|
| Spread: | Treasuries plus 200 bps
|
| Price talk: | 220 bps area
|
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