- WellCare Health Plans, Inc. announced that on August 13, 2018 it completed an offering of $750 million aggregate principal amount of 5.375% senior notes due 2026.
- The notes were issued at 100.0% and bear interest at 5.375%.
WellCare Health Plans, Inc. announced today that on August 13, 2018 it completed an offering of $750 million aggregate principal amount of 5.375% senior notes due 2026 (the “notes”). The notes were issued at 100.0% and bear interest at 5.375%. Interest will be payable semi-annually in arrears on February 15 and August 15 of each year, commencing on February 15, 2019. The notes will mature on August 15, 2026.
WellCare expects to use the net proceeds from the offering of the notes to fund a portion of the cash consideration for its previously announced acquisition of Meridian Health Plan of Michigan, Inc., Meridian Health Plan of Illinois, Inc. and MeridianRx, a pharmacy benefit manager (collectively, “Meridian”), to pay related fees and expenses and for general corporate purposes. If the acquisition is not completed for any reason, WellCare will be required to redeem the notes, in whole, at a redemption price equal to 100% of the aggregate principal amount of the notes, plus accrued and unpaid interest.
The notes were offered and sold only to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and to certain persons outside of the United States pursuant to Regulation S under the Securities Act. The notes have not been and will not be registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release does not constitute an offer to sell the notes nor a solicitation for an offer to purchase the notes.
Date: August 16, 2018
Source: CISION