Anthem to use cash, new debt to fund $49 billion acquisition of Cigna

By Lisa Kerner

Charlotte, N.C., June 22 – Anthem, Inc. will use cash and new debt to permanently fund its proposed $49 billion acquisition of Cigna Corp. In the meantime, the company is confident it can obtain bridge financing.

On Monday, Anthem held a conference call to discuss the transaction details.

Under the offer, Anthem would acquire Cigna for $184 per share in the cash and stock deal.

Anthem’s financing plan includes $6 billion of available cash, $23 billion of new bank debt and unsecured notes and $15 billion of new equity issuance to Cigna shareholders, according to presentation materials.

Financing is expected to be in place prior to the transaction’s close.

Anthem is committed to delevering over the two-year period post-closing and to maintaining its investment-grade debt ratings.

Indianapolis-based Anthem is a health benefits company.

Cigna is a Bloomfield, Conn.-based health service company.

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