Cigna gets $1.5 billion five-year facility at Libor plus 75-125 bps

By Wendy Van Sickle

Columbus, Ohio, Dec. 22 – Cigna Corp. amended and restated its $1.5 billion five-year revolving credit agreement on Friday, according to an 8-K filed with the Securities and Exchange Commission.

Interest on the loans will be Libor plus a spread ranging from 75 basis points to 125 bps based on the company’s debt ratings.

JPMorgan Chase Bank, NA, Citigroup Global Markets Inc., Bank of America Merrill Lynch and Wells Fargo Securities LLC are the joint lead arrangers and joint book managers.

JPMorgan Chase is the administrative agent; Citibank is the syndication agents; and Bank of America, NA. and Wells Fargo Bank, NA are the co-documentation agents.

The credit agreement replaces the company’s amended and restated revolving credit and letter-of-credit agreement dated Dec. 12, 2014.

Under the loan terms, the company may borrow up to $1.5 billion for general corporate purposes, of which up to $500 million is available for the issuance of standby letters of credit.

The agreement also includes an option to increase the facility amount up to $2 billion and an option to extend the Dec. 22, 2022 maturity date for one-year periods.

The financial covenant requires that the company may not permit its leverage ratio to increase to more than 0.5 times.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.