WellPoint (WLP) to Commence $1.35B Senior Convertible Debt Offering

WellPoint, Inc. (NYSE: WLP) announced its intention to commence an offering, subject to market conditions and other factors, of $1.35 billion principal amount of senior convertible debentures. The debentures would be due in 2042 and are to be offered and sold to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The interest rate, conversion rate and other terms will be determined by negotiations between the company and the initial purchasers of the debentures. WellPoint also intends to grant to the initial purchasers of the debentures the right to purchase up to an additional $150 million principal amount of debentures to cover overallotments.

WellPoint intends to use up to $600 million of the net proceeds to purchase shares of its common stock concurrently with the offering of the debentures, with the balance to be used for general corporate purposes, including but not limited to additional purchases of shares of its common stock pursuant to its share repurchase program and the repayment of short- and/or long-term debt. Any such repurchases could affect or maintain the market price of WellPoint’s common stock.

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