By Andrea Heisinger
New York, Feb. 8 - Aflac Inc. sold $750 million of senior notes (A3/A-/A-) in two tranches on Wednesday, a source away from the trade said.
A $400 million tranche of 2.65% five-year paper sold at 99.911 to yield 2.669% with a spread of Treasuries plus 185 basis points.
There was also a $350 million tranche of 4% 10-year notes priced at 99.82 to yield 4.022% with a spread of Treasuries plus 205 bps.
Goldman Sachs & Co. and J.P. Morgan Securities LLC were the bookrunners.
Proceeds will be used to repay in full at maturity $347 million of the parent company's 1.87% Samurai notes due in June. Any remainder will be used for general corporate purposes, including capital contributions to subsidiaries if needed.
Aflac last priced bonds in a $750 million deal of five- and 30-year notes on Aug. 4, 2010. The 3.45% five-year notes from that deal were priced at 185 bps over Treasuries.
The holding company for supplemental health and life insurance subsidiaries is based in Columbus, Ga.
| Issuer: | Aflac Inc.
|
| Issue: | Senior notes
|
| Amount: | $750 million
|
| Bookrunners: | Goldman Sachs & Co., J.P. Morgan Securities LLC
|
| Trade date: | Feb. 8
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A-
|
| Fitch: A-
|
|
|
| Five-year notes
|
| Amount: | $400 million
|
| Maturity: | 2017
|
| Coupon: | 2.65%
|
| Price: | 99.911
|
| Yield: | 2.669%
|
| Spread: | Treasuries plus 185 bps
|
|
|
| 10-year notes
|
| Amount: | $350 million
|
| Maturity: | 2022
|
| Coupon: | 4%
|
| Price: | 99.82
|
| Yield: | 4.022%
|
| Spread: | Treasuries plus 205 bps
|
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