Cigna gets three revolving credit facilities totaling $5 billion

By Marisa Wong

Los Angeles, April 30 – Cigna Corp. entered into three separate revolving credit facilities totaling $5 billion on April 29, according to an 8-K filing with the Securities and Exchange Commission.

Cigna entered into a $3 billion five-year revolver, a $1 billion three-year revolver and $1 billion 364-day revolver.

JPMorgan Chase Bank, NA is administrative agent for each of the facilities. BofA Securities, Inc., Citibank, NA, Morgan Stanley Senior Funding, Inc., MUFG Bank, Ltd. and Wells Fargo Securities, LLC are the joint lead arrangers and joint bookrunners.

The credit agreements replace in full the company’s existing revolvers.

Each facility includes an option to increase commitments in an aggregate amount of up to $1.5 billion across all three facilities for a maximum aggregate capacity of $6.5 billion.

Interest is equal to Libor plus an applicable margin based on Cigna’s public debt ratings, subject to a 0% Libor floor.

The applicable margin for the five-year revolver ranges from 87.5 basis points to 137.5 bps. The commitment fee, also based on ratings, ranges from 7 bps to 15 bps.

Pricing for the other two revolvers was not included in Friday’s 8-K filing.

The credit agreements contain a financial covenant that Cigna may not permit its leverage ratio to be greater than 0.60 to 1.00 or, if requested by Cigna, 0.65 to 1.00 for the four quarters following an acquisition in which total cash consideration is equal to or greater than $1 billion.

The health services company is based in Bloomfield, Conn.

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