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Wellpoint raises $1.35B in first convertible offering since '99

October 3, 2012

Indianapolis-based WellPoint Inc. sold its first convertible securities in more than 13 years with a $1.35 billion offering of 30-year bonds.

The operator of the Blue Cross and Blue Shield insurance plans issued 2.75-percent debt with a conversion price of $75.57 per share, according to data compiled by Bloomberg. The shares traded at $60.29 each Wednesday morning.

WellPoint previously issued convertibles in June 1999, selling $299 million of debt that has since been called, Bloomberg data show. The company last issued callable bonds in September, raising $3.25 billion in four parts for its pending acquisition of Amerigroup Corp.

The new debt is rated A- by Standard & Poor’s and BBB+ by Fitch Ratings, Bloomberg data show.

Credit Suisse Group AG, Bank of America Corp. and UBS AG managed the sale for the company.

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