By Andrea Heisinger
New York, May 18 - Aflac Inc. sold an upsized $850 million of 8.5% 10-year senior notes Monday to yield Treasuries plus 530 basis points, according to a source close to the deal and an FWP filing with the Securities and Exchange Commission.
The size was originally $500 million, the source said.
The notes (A2/A-/A) priced at par to yield 8.5%. The notes have a make-whole call at Treasuries plus 50 bps.
Bookrunners were Goldman Sachs & Co. and J.P. Morgan Securities Inc.
Co-managers were Banc of America Securities LLC and Sandler O'Neill & Partners, LP.
Proceeds will be used to repay a loan from a primary life insurance subsidiary and for general corporate purposes.
The insurance company is based in Columbus, Ga.
| Issuer: | Aflac Inc.
|
| Issue: | Senior notes
|
| Amount: | $850 million, increased from $500 million
|
| Maturity: | May 15, 2019
|
| Bookrunners: | Goldman Sachs & Co., J.P. Morgan Securities Inc.
|
| Co-managers: | Banc of America Securities LLC, Sandler O'Neill & Partners, LP
|
| Coupon: | 8.5%
|
| Price: | Par
|
| Yield: | 8.5%
|
| Spread: | Treasuries plus 530 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Trade date: | May 18
|
| Settlement date: | May 21
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A-
|
| Fitch: A
|
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