By Andrea Heisinger
New York, Feb. 9 - Aflac Inc. gave the terms of its $750 million of senior notes (A3/A-/) priced in two tranches on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
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 is a make-whole call at Treasuries plus 30 bps.
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. The notes have a make-whole redemption at 35 bps over Treasuries.
Goldman Sachs & Co. and J.P. Morgan Securities LLC were the bookrunners.
Co-manager was Morgan Stanley & Co. LLC.
Proceeds are being 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
|
| Co-manager: | Morgan Stanley & Co. LLC
|
| Trade date: | Feb. 8
|
| Settlement date: | Feb. 10
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A-
|
|
|
| Five-year notes
|
| Amount: | $400 million
|
| Maturity: | Feb. 15, 2017
|
| Coupon: | 2.65%
|
| Price: | 99.911
|
| Yield: | 2.669%
|
| Spread: | Treasuries plus 185 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
|
|
| 10-year notes
|
| Amount: | $350 million
|
| Maturity: | Feb. 15, 2022
|
| Coupon: | 4%
|
| Price: | 99.82
|
| Yield: | 4.022%
|
| Spread: | Treasuries plus 205 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
© 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.
