By Aleesia Forni
Virginia Beach, Va., July 30 - WellPoint Inc. priced on Tuesday $1.25 billion of senior notes in two parts, according to a syndicate source and an FWP filing with the Securities and Exchange Commission.
Both tranches priced at the tight end of talk.
The company sold $650 million of 2.3% five-year notes at 99.579 to yield 2.391%, or Treasuries plus 100 basis points.
Price talk was set at Treasuries plus 100 bps to 105 bps.
Additionally, the company priced $600 million of 5.1% 30-year bonds at 99.865 to yield 5.109%.
WellPoint talked the notes at Treasuries plus 145 bps to 150 bps.
Morgan Stanley & Co. LLC and Citigroup Global Markets Inc. were active joint bookrunners. Passive bookrunners were J.P. Morgan Securities LLC and UBS Securities LLC.
The company plans to use the proceeds from the offering to fund its cash tender offer for up to $600 million of its outstanding notes, including the payment of accrued interest and any applicable early tender premiums.
The remaining net proceeds will be used for general corporate purposes, including repurchases of other outstanding debt.
WellPoint was last in the market with $3.25 billion of bonds in four maturities on Sept. 5, 2012.
The health benefits company is based in Indianapolis.
| Issuer: | WellPoint Inc.
|
| Issue: | Senior unsecured notes
|
| Amount: | $1.25 billion
|
| Bookrunners: | Citigroup Global Markets Inc., Morgan Stanley & Co. LLC (active), J.P. Morgan Securities LLC, UBS Securities LLC (passive)
|
| Trade date: | July 30
|
| Settlement date: | Aug. 6
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: A-
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $650 million
|
| Maturity: | July 15, 2018
|
| Coupon: | 2.3%
|
| Price: | 99.579
|
| Yield: | 2.391%
|
| Spread: | Treasuries plus 100 bps
|
| Price talk: | Treasuries plus 100 bps to 105 bps
|
| Make-whole call: | Treasuries plus 15 bps
|
|
|
| 30-year bonds
|
| Amount: | $600 million
|
| Maturity: | Jan. 1, 2044
|
| Coupon: | 5.1%
|
| Price: | 99.865
|
| Yield: | 5.109%
|
| Spread: | Treasuries plus 145 bps
|
| Price talk: | Treasuries plus 145 bps to 150 bps
|
| Make-whole call: | Treasuries plus 25 bps
|
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