Published on 3/4/2014 in the Prospect News Investment Grade Daily.
New Issue: Aetna prices $750 million senior notes in five-, 30-year tranches
By Aleesia Forni
Virginia Beach, March 4 - Aetna Inc. priced $750 million of senior notes (Baa2/A-/A-) in two tranches, according to an FWP filing with the Securities and Exchange Commission.
A $375 million tranche of 2.2% notes due 2019 sold at 99.9 to yield 2.221%, or Treasuries plus 70 basis points.
There was also a $375 million tranche of 4.75% 30-year bonds, which priced at a spread of 115 bps over Treasuries.
Pricing was at 99.76 to yield 4.765%.
The joint bookrunners were BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, RBS Securities Inc. and U.S. Bancorp Investments Inc.
Proceeds will be used to redeem all of the company's outstanding 6% senior notes due 2016.
The diversified health care benefits company is based in Hartford, Conn.
| Issuer: | Aetna Inc.
|
| Issue: | Senior notes
|
| Amount: | $750 million
|
| Joint bookrunners: | BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, RBS Securities Inc., U.S. Bancorp Investments Inc.
|
| Co-managers: | Barclays, Citigroup Global Markets Inc., Goldman, Sachs & Co., J.P. Morgan Securities LLC, Mitsubishi UFJ Securities (USA), Inc., Morgan Stanley & Co. LLC, SunTrust Robinson Humphrey, Inc., UBS Securities LLC, Wells Fargo Securities, LLC
|
| Trade date: | March 4
|
| Settlement date: | March 7
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: A-
|
| Fitch: A-
|
| Distribution: | SEC-registered
|
|
|
| Notes due 2019
|
| Amount: | $375 million
|
| Maturity: | March 15, 2019
|
| Coupon: | 2.2%
|
| Price: | 99.9
|
| Yield: | 2.221%
|
| Spread: | Treasuries plus 70 bps
|
| Make-whole call: | Treasuries plus 15 bps prior to Feb. 15, 2019, then callable at par
|
|
|
| Notes due 2044
|
| Amount: | $375 million
|
| Maturity: | March 15, 2044
|
| Coupon: | 4.75%
|
| Price: | 99.76
|
| Yield: | 4.765%
|
| Spread: | Treasuries plus 115 bps
|
| Make-whole call: | Treasuries plus 20 bps prior to Sept. 15, 2043, then callable at par
|
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