By Andrea Heisinger
New York, May 1 - Aetna Inc. priced $750 million of senior notes (Baa1/A-/A-) in two tranches on Tuesday, a source close to the trade said.
The size of the trade grew from an initially announced $500 million, the source said.
The $250 million of 1.75% five-year notes sold at 99.34 to yield 1.888% with a spread of Treasuries plus 105 basis points. The notes have a make-whole call at Treasuries plus 15 bps until April 15, 2017 and a par call after that date.
There was also a $500 million tranche of 4.5% 30-year bonds priced at 95.774 to yield 4.766% with a spread of Treasuries plus 160 bps.
The bonds have a make-whole call at 25 bps over Treasuries until Nov. 15, 2041 and a par call after that date.
The notes feature a change-of-control put at 101%.
Bank of America Merrill Lynch, Barclays Capital Inc., Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC were the bookrunners.
Senior co-managers were Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBS Securities Inc., UBS Securities LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC.
BNY Mellon Capital Markets LLC, Fifth Third Securities Inc., HSBC Securities (USA) Inc., Mitsubishi UFJ Securities (USA) Inc., PNC Capital Markets LLC and SunTrust Robinson Humphrey Inc. were the co-managers.
Proceeds will be used for general corporate purposes, including repayment of short-term debt, redemption or repurchase of outstanding securities and funding of working capital.
Aetna was last in the market with a $500 million offering of 10-year notes on May 17, 2011.
The health insurance company is based in Hartford, Conn.
| Issuer: | Aetna Inc.
|
| Issue: | Senior notes
|
| Amount: | $750 million, upsized from $500 million
|
| Bookrunners: | Bank of America Merrill Lynch, Barclays Capital Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC
|
| Senior co-managers: | Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBS Securities Inc., UBS Securities LLC, U.S. Bancorp Investments Inc., Wells Fargo Securities LLC
|
| Co-managers: | BNY Mellon Capital Markets LLC, Fifth Third Securities Inc., HSBC Securities (USA) Inc., Mitsubishi UFJ Securities (USA) Inc., PNC Capital Markets LLC, SunTrust Robinson Humphrey Inc.
|
| Change-of-control put: | 101%
|
| Trade date: | May 1
|
| Settlement date: | May 4
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: A-
|
| Fitch: A-
|
|
|
| Five-year notes
|
| Amount: | $250 million
|
| Maturity: | May 15, 2017
|
| Coupon: | 1.75%
|
| Price: | 99.34
|
| Yield: | 1.888%
|
| Spread: | Treasuries plus 105 bps
|
| Call: | Make-whole at Treasuries plus 15 bps before April 15, 2017, par call after
|
|
|
| 30-year bonds
|
| Amount: | $500 million
|
| Maturity: | May 15, 2042
|
| Coupon: | 4.5%
|
| Price: | 95.774
|
| Yield: | 4.766%
|
| Spread: | Treasuries plus 160 bps
|
| Call: | Make-whole at Treasuries plus 25 bps before Nov. 15, 2041, par call after
|
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