Centene Corporation announced that it has commenced an underwritten public offering to sell $1,800,000,000 of senior notes. The $1,800,000,000 offering of senior notes will include an add-on to its 2.450% senior notes due 2028 and new senior notes due 2031 subject to market and other conditions.
- The Notes will constitute a further issuance of the $1,800,000,000 aggregate principal amount of 2.450% senior notes due 2028 that were issued on July 1, 2021, and will have the same terms as such notes, other than the issue date and the issue price.
- The $1,800,000,000 offering of senior notes will include an add-on to its 2.450% senior notes due 2028 (the 2028 Notes) and new senior notes due 2031 (together with the 2028 Notes, the Notes), subject to market and other conditions.
- Centene intends to use the net proceeds from the offering of the Notes, together with a portion of the proceeds of certain term loans under the Company’s proposed amended and restated credit agreement and cash on hand to redeem all of its outstanding 5.375% senior notes due 2026.
- Pending the application of the net proceeds of the offering for the foregoing purposes, net proceeds may be temporarily used for general corporate purposes. The foregoing does not constitute a notice of redemption or an obligation to issue a notice of redemption for the outstanding notes of any series.
- J.P. Morgan, Barclays, BofA Securities, Truist Securities and Wells Fargo Securities are acting as joint book-running managers for the offering of the Notes. This offering is being made pursuant to an effective shelf registration statement and prospectus and a related preliminary prospectus supplement filed by the Company with the Securities and Exchange Commission (the “SEC”).