By Cristal Cody
Tupelo, Miss., Oct. 18 – UnitedHealth Group Inc. priced $4 billion of senior notes (A3/A+/A) in five tranches on Wednesday, according to a market source.
The company sold $300 million of three-year floating-rate notes at Libor plus 7 basis points.
UnitedHealth priced $900 million of 1.95% three-year fixed-rate notes with a spread of Treasuries plus 30 bps.
In the five-year tranche, the company sold $900 million of the notes with a 2.375% coupon and a spread of 45 bps over Treasuries.
UnitedHealth priced $950 million of 2.95% 10-year notes at a spread of 70 bps over Treasuries.
In the final tranche, the company sold $950 million of 3.75% 30-year notes at a Treasuries plus 95 bps spread.
U.S. Bancorp Investments Inc., Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Mizuho Securities USA Inc., RBC Capital Markets Corp. and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used for general corporate and working capital purposes, including redeeming or repurchasing outstanding securities or refinancing debt.
UnitedHealth is a diversified health company based in Minnetonka, Minn.
| Issuer: | UnitedHealth Group Inc.
|
| Amount: | $4 billion
|
| Description: | Senior notes
|
| Bookrunners: | U.S. Bancorp Investments Inc., Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Mizuho Securities USA Inc., RBC Capital Markets Corp. and Wells Fargo Securities LLC
|
| Trade date: | Oct. 18
|
| Ratings: | Moody’s: A3
|
| S&P: A+
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| Three-year floaters
|
| Amount: | $300 million
|
| Maturity: | Oct. 15, 2020
|
| Coupon: | Libor plus 7 bps
|
|
|
| Three-year notes
|
| Amount: | $900 million
|
| Maturity: | Oct. 15, 2020
|
| Coupon: | 1.95%
|
| Spread: | Treasuries plus 30 bps
|
|
|
| Five-year notes
|
| Amount: | $900 million
|
| Maturity: | Oct. 15, 2022
|
| Coupon: | 2.375%
|
| Spread: | Treasuries plus 45 bps
|
|
|
| 10-year notes
|
| Amount: | $950 million
|
| Maturity: | Oct. 15, 2027
|
| Coupon: | 2.95%
|
| Spread: | Treasuries plus 70 bps
|
|
|
| 30-year notes
|
| Amount: | $950 million
|
| Maturity: | Oct. 15, 2047
|
| Coupon: | 3.75%
|
| Spread: | Treasuries plus 95 bps
|
|
|
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