S&P assigns Centene notes BBB-

S&P said it assigned a BBB- debt rating to Centene Corp.'s planned $1.8 billion of senior unsecured notes, to be sold in two maturities.

Centene will use the proceeds, along with proceeds from a separate credit facility transaction, including a $750 million term loan add-on, and cash on hand, to redeem $2.55 billion of various debt issues maturing in 2026.

These notes include its $1.8 billion of 5 3/8% senior notes due June 2026, $747.2 million outstanding of 5 3/8% senior notes due August 2026 and WellCare's $2.782 million outstanding of 5 3/8% senior notes due August 2026.

“Centene's refinancing transactions are leverage neutral and will lower its overall cost of capital,” S&P said in a press release.

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