Centene, Chaparral Price Add-On Bonds
November 2, 2012
Two companies drove by the market today with add-on bond offerings.
St. Louis-based healthcare services company Centene sold $175 million (upsized from $150 million) in add-on of 5.75% Senior Notes due 2017. The bonds were issued at a price of 106% of par to yield 4.3%. Barclays and Wells Fargo were the bookrunners. The company initially priced $250 million in the notes in May of 2011. It plans to use the proceeds for general corporate purposes. The bonds are rated Ba2 by Moody’s Investors Service and BB by Standard & Poor’s.
Oklahoma City-based oil and natural gas company Chaparral Energy sold $150 million in add-on 7.625% senior notes due 2022. Wells Fargo was the lead bookrunner. The bonds were issued at a price of 104.50% of par to yield 6.85%. The company initially sold $400 million (upsized from $350 million) of the 2022 notes in April. The bonds are rated B3 by Moody’s and B- by S&P. The company was on the market in February 2011, when it issued $400 million (upsized from $350 million) in 8.25% senior notes due 2021.