By Aleesia Forni
Virginia Beach, March 9 – Aflac Inc. sold an upsized $1 billion issue of five-year and 10-year senior notes (A3/A) in Monday’s session, according to a market source.
There was $550 million of 2.4% notes due 2020 priced at 99.972 to yield 2.406%, or Treasuries plus 75 basis points.
The notes sold at the tight end of the Treasuries plus 80 bps area guidance, which firmed from initial talk set in the 85 bps area over Treasuries.
A second tranche was $450 million of 3.25% notes due 2025 priced at 99.602 to yield 3.297%, or Treasuries plus 110 bps.
Guidance was set in the 115 bps area after having tightened from initial talk in the 120 bps area over Treasuries.
Bookrunners were Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, BofA Merrill Lynch, Credit Suisse Securities (USA) LLC and Mizuho Securities.
The company plans to use the proceeds from the offering to fund the redemption if its $850 million 8.5% senior notes due 2019 and for general corporate purposes.
The company provides supplemental health and life insurance through its subsidiaries and is based in Columbus, Ga.
| Issuer: | Aflac Inc.
|
| Issue: | Senior notes
|
| Amount: | $1 billion, upsized from $900 million
|
| Bookrunners: | Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Mizuho Securities
|
| Trade date: | March 9
|
| Ratings: | Moody’s: A3
|
| Standard & Poor’s: A
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $550 million
|
| Maturity: | March 16, 2020
|
| Coupon: | 2.4%
|
| Price: | 99.972
|
| Yield: | 2.406%
|
| Spread: | 75 bps over Treasuries
|
| Price talk: | 80 bps area over Treasuries, tightened from 85 bps area
|
|
|
| 10-year notes
|
| Amount: | $450 million
|
| Maturity: | March 17, 2025
|
| Coupon: | 3.25%
|
| Price: | 99.602
|
| Yield: | 3.297%
|
| Spread: | 110 bps over Treasuries
|
| Price talk: | 115 bps area over Treasuries, tightened from 120 bps area
|
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