Pricing Update: Blue Cross/Blue Shield of Nebraska
September 29, 2010
Blue Cross/Blue Shield of Nebraska (BCBSNE) tapped the private placement market for an $83 million credit tenant lease (CTL) deal, a source familiar with the situation confirmed.
The deal, which priced September 23, was done for BCBSNE’s headquarters in Omaha. The transaction, agented by Mesirow Financial, priced “better than its price talk,” which was in the area of 250 bps above Treasurys, said the source. The CTL deal was done for a 25-year final and 15-year average life. BCBSNE was a first time issuer on this market and was perceived as an NAIC-1.
BCBSNE is a private-held health insurance company, covering about 700,000 of Nebraska’s residents. Its network includes about 94% of the state’s physicians.
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