New Issue: Humana details $750 million 3.7% seven-year notes at 137.5 bps spread

By Rebecca Melvin and Cristal Cody

Concord, N.H., March 22 – Humana Inc. gave details of its $750 million of 3.7% seven-year senior notes that priced on Monday at 99.872 to yield 3.721%, or a spread of 137.5 basis points over Treasuries, according to an FWP filing with the Securities and Exchange Commission.

The notes (Baa3/BBB+/BBB) priced tight to talk in the Treasuries plus 165 bps area, according to a market source.

The notes have a make-whole call at Treasuries plus 25 bps plus accrued interest followed by a par call on or after Jan. 23, 2029.

Noteholders will be able to exercise a change-of-control put at 101.

Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, BofA Securities Inc., J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, PNC Capital Markets LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC, are the joint bookrunning managers for the offering.

Proceeds will be used for general corporate purposes, which may include the repayment of debt, including borrowings under Humana’s commercial paper program. As of Dec. 31, 2021, the insurer’s commercial paper due within one year had a weighted average annual interest rate of 0.33%.

The health care and insurance company is based in Louisville, Ky.

Issuer:	Humana Inc.
Amount:	$750 million
Issue:	Senior notes
Maturity:	March 23, 2029
Bookrunners:	Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, BofA Securities Inc., J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, PNC Capital Markets LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC
Co-managers:	Barclays, Truist Securities Inc., BNY Mellon Capital Markets LLC, Fifth Third Securities Inc., Mizuho Securities USA LLC, Regions Securities LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America Inc., TD Securities (USA) LLC, UMB Capital Corp. and R. Seelaus & Co. LLC
Trustee:	Bank of New York Mellon Trust Co., NA
Counsel to issuer:	Fried, Frank, Harris, Shriver & Jacobson LLP
Counsel to underwriters:	Simpson Thacher & Bartlett LLP
Coupon:	3.7%
Price:	99.872
Yield:	3.721%
Spread:	137.5 bps over Treasuries
Call:	Make-whole call at Treasuries plus 25 bps, then par call on or after Jan. 23, 2029
Change-of-control put:	At 101
Pricing date:	March 21
Settlement date:	March 23
Ratings:	Moody’s: Baa3
	S&P: BBB+
	Fitch: BBB
Talk:	165 bps area over Treasuries
Cusip:	444859BT8

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