By Aleesia Forni
Virginia Beach, Aug. 8 – WellPoint, Inc. priced $2.7 billion of senior notes in four tranches, according to a FWP filing with the Securities and Exchange Commission.
The sale included $850 million of 2.25% five-year notes sold at 99.769 to yield 2.299%, or Treasuries plus 70 basis points.
A second tranche was $800 million of 3.5% 10-year notes sold at 99.498 to yield 3.56%, or Treasuries plus 115 bps.
There was also $800 million of 4.65% 30-year bonds sold at 99.791 to yield 4.663%.
The notes sold with a spread of Treasuries plus 145 bps.
Finally, $250 million of 4.85% 40-year bonds sold at 99.771 to yield 4.863%, or Treasuries plus 165 bps.
BofA Merrill Lynch and Goldman Sachs & Co. were the active bookrunners.
Proceeds will be used to redeem the company’s 5% notes due 2014 and 5.25% notes due 2016, with any remaining proceeds to be used general corporate purposes.
The health benefits company is based in Indianapolis.
| Issuer: | WellPoint, Inc.
|
| Issue: | Senior notes
|
| Amount: | $2.7 billion
|
| Active bookrunners: | BofA Merrill Lynch, Goldman Sachs & Co.
|
| Trade date: | Aug. 7
|
| Settlement date: | Aug. 12
|
| Ratings: | Moody’s: Baa2
|
| Standard & Poor’s: A-
|
| Fitch: BBB
|
| Distribution: | SEC-registered
|
|
|
| Five-year notes
|
| Amount: | $850 million
|
| Maturity: | Aug. 15, 2019
|
| Passive bookrunner: | J.P. Morgan Securities LLC
|
| Coupon: | 2.25%
|
| Price: | 99.769
|
| Yield: | 2.299%
|
| Spread: | Treasuries plus 70 bps
|
| Price talk: | Treasuries plus 80 bps to 85 bps
|
| Make-whole call: | Treasuries plus 10 bps
|
|
|
| 10-year notes
|
| Amount: | $800 million
|
| Maturity: | Aug. 15, 2024
|
| Passive bookrunner: | Deutsche Bank Securities Inc.
|
| Coupon: | 3.5%
|
| Price: | 99.498
|
| Yield: | 3.56%
|
| Spread: | Treasuries plus 115 bps
|
| Price talk: | Treasuries plus 125 bps area
|
| Make-whole call: | Treasuries plus 17.5 bps prior to May 15, 2024 then callable at par
|
|
|
| 30-year bonds
|
| Amount: | $800 million
|
| Maturity: | Aug. 15, 2044
|
| Passive bookrunner: | U.S. Bancorp Investments Inc.
|
| Coupon: | 4.65%
|
| Price: | 99.791
|
| Yield: | 4.663%
|
| Spread: | Treasuries plus 145 bps
|
| Price talk: | Treasuries plus 155 bps area
|
| Make-whole call: | Treasuries plus 25 bps prior to February 15, 2044, then callable at par
|
|
|
| 40-year bonds
|
| Amount: | $250 million
|
| Maturity: | Aug. 15, 2054
|
| Passive bookrunner: | UBS Securities LLC
|
| Coupon: | 4.85%
|
| Price: | 99.771
|
| Yield: | 4.863%
|
| Spread: | Treasuries plus 165 bps
|
| Price talk: | Treasuries plus 165 bps to 170 bps
|
| Make-whole call: | Treasuries plus 25 bps prior to Feb. 15, 2054, then callable at par
|
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