WellCare Health Plans Inc. plans to offer $700 million aggregate principal amount of senior notes due 2026.
It intends to use the net proceeds to fund a portion of the cash consideration for its acquisition of Meridian Health Plan of Michigan Inc., Meridian Health Plan of Illinois Inc. and MeridianRx, to pay related fees and expenses and for general corporate purposes.
Should the acquisition fail to close, WellCare will be required to redeem the notes at a redemption price equal to 100% of the aggregate principal amount of the notes, plus accrued and unpaid interest. The offering is not contingent on the acquisition pushing through.
The notes will be offered and sold only to qualified institutional buyers.