By Cristal Cody
Eureka Springs, Ark., June 2 – Aetna Inc. priced $13 billion in eight tranches of senior notes (Baa2/A/A-) on Thursday, according to a market source.
The company sold $500 million of one-year floating-rate notes at Libor plus 65 basis points, on the tight side of guidance of Libor plus 70 bps, plus or minus 5 bps.
Aetna priced $1 billion of 1.7% two-year notes at 85 bps over Treasuries, compared to talk of Treasuries plus 90 bps, plus or minus 5 bps.
The $1.65 billion tranche of 1.9% three-year notes priced with a spread of 90 bps over Treasuries. The notes were talked at Treasuries plus 95 bps, plus or minus 5 bps.
The company placed $1.85 billion of 2.4% five-year notes at Treasuries plus 105 bps, on the tight side of talk of Treasuries plus 110 bps, plus or minus 5 bps.
The $1.3 billion tranche of 2.8% seven-year notes priced at 120 bps over Treasuries. The notes were guided at Treasuries plus 125 bps, plus or minus 5 bps.
Aetna sold $2.8 billion of 3.2% 10-year notes with a spread of 145 bps over Treasuries. The notes were talked to price at Treasuries plus 150 bps, plus or minus 5 bps.
The company placed $1.5 billion of 4.25% 20-year notes at 170 bps over Treasuries, on the tight side of talk of Treasuries plus 175 bps, plus or minus 5 bps.
In the final tranche, Aetna sold $2.4 billion of 4.375% 30-year notes at 180 bps over Treasuries. The bonds were guided at 185 bps over Treasuries, plus or minus 5 bps.
The bookrunners were Citigroup Global Markets Inc. and UBS Securities LLC.
Proceeds will be used to fund a $3.2 billion term loan and the cash portion of the purchase price of the company’s merger with Humana Inc., according to a 424B3 filing with the Securities and Exchange Commission.
If the merger is not completed, proceeds from the floating-rate notes and two series of fixed-rate notes will be used for general corporate purposes.
Aetna is a diversified health care benefits company based in Hartford, Conn.
| Issuer: | Aetna Inc.
|
| Amount: | $13 billion
|
| Securities: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., UBS Securities LLC
|
| Pricing date: | June 2
|
| Ratings: | Moody’s: Baa2
|
| S&P: A
|
| Fitch: A-
|
| Distribution: | SEC registered
|
|
|
| One-year floaters
|
| Amount: | $500 million
|
| Maturity: | Dec. 8, 2017
|
| Coupon: | Libor plus 65 bps
|
| Price guidance: | Libor plus 70 bps, plus or minus 5 bps
|
|
|
| Two-year notes
|
| Amount: | $1 billion
|
| Maturity: | June 7, 2018
|
| Coupon: | 1.7%
|
| Spread: | Treasuries plus 85 bps
|
| Price guidance: | Treasuries plus 90 bps, plus or minus 5 bps
|
|
|
| Three-year notes
|
| Amount: | $1.65 billion
|
| Maturity: | June 7, 2019
|
| Coupon: | 1.9%
|
| Spread: | Treasuries plus 90 bps
|
| Price guidance: | Treasuries plus 95 bps, plus or minus 5 bps
|
|
|
| Five-year notes
|
| Amount: | $1.85 billion
|
| Maturity: | June 15, 2021
|
| Coupon: | 2.4%
|
| Spread: | Treasuries plus 105 bps
|
| Price guidance: | Treasuries plus 110 bps, plus or minus5 bps
|
|
|
| Seven-year notes
|
| Amount: | $1.3 billion
|
| Maturity: | June 15, 2023
|
| Coupon: | 2.8%
|
| Spread: | Treasuries plus 120 bps
|
| Price guidance: | Treasuries plus 125 bps, plus or minus 5 bps
|
|
|
| 10-year notes
|
| Amount: | $2.8 billion
|
| Maturity: | June 15, 2026
|
| Coupon: | 3.2%
|
| Spread: | Treasuries plus 145 bps
|
| Price guidance: | Treasuries plus 150 bps, plus or minus 5 bps
|
|
|
| 20-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | June 15, 2036
|
| Coupon: | 4.25%
|
| Spread: | Treasuries plus 170 bps
|
| Price guidance: | Treasuries plus 175 bps, plus or minus 5 bps
|
|
|
| 30-year notes
|
| Amount: | $2.4 billion
|
| Maturity: | June 15, 2046
|
| Coupon: | 4.375%
|
| Spread: | Treasuries plus 180 bps
|
| Price guidance: | Treasuries plus 185 bps, plus or minus 5 bps
|
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