Cigna starts tender for up to $1 billion of seven series of notes

New York, Sept. 5 – Cigna Corp. began a tender offer to buy up to $1 billion principal amount of notes from seven series of its debt.

The tender is for the following securities, listed in descending order of priority of acceptance:

• $83.14 million of 8.3% step down notes due 2033 at a price to be determined using a fixed spread of 115 basis points over the 3% Treasury due May 2047;

• $500 million of 6.15% notes due 2036 at a price to be determined using a fixed spread of 98 basis points over the 3% Treasury due May 2047;

• $300 million of 5.875% notes due 2041 at a price to be determined using a fixed spread of 100 bps over the 3% Treasury due May 2047;

• $750 million of 5.375% notes due 2042 at a price to be determined using a fixed spread of 95 bps over the 3% Treasury due May 2047;

• $300 million of 7.875% debentures due 2027 at a price to be determined using a fixed spread of 90 bps over the 2.25% Treasury due August 2027;

• $16.86 million of 8.3% notes due 2023 at a price to be determined using a fixed spread of 85 bps over the 3% Treasury due August 2022; and

• $100 million of 7.65% notes due 2023 at a price to be determined using a fixed spread of 70 bps over the 3% Treasury due August 2022.

Pricing will be set at 2 p.m. ET on Sept. 18.

All the prices include an early tender payment of $30.00 per $1,000 that will only be paid to holders who tender by 5 p.m. ET on Sept. 18.

Cigna will also pay accrued interest up to but excluding the settlement date.

The tender ends at 11:59 p.m. ET on Oct. 2.

Tendered securities may be withdrawn until 5 p.m. ET on Sept. 18.

Early settlement is planned for Sept. 19 and final settlement for Oct. 3. Cigna has the option to settle all tenders on the final settlement date.

Tenders will be accepted in order of priority but notes tendered before the early settlement date will be accepted before those tendered after, regardless of priority level.

HSBC Securities (USA) Inc. (212 525-5552 or 888 HSBC-4LM), J.P. Morgan Securities LLC (212 834-8553 or 866 834-4666) and MUFG Securities Americas Inc. (212 405-7481 or 877 744-4532) are dealer managers.

D.F. King & Co., Inc. (800 628-8532, 212 269-5550 or ci@dfking.com) is information agent.

Cigna is a Bloomfield, Conn., provider of health benefit plans and insurance.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.