By Wendy Van Sickle
Columbus, Ohio, Nov. 7 – Humana Inc. priced $1.25 billion of senior notes in a two-part transaction (Baa3/BBB=/BBB) on Monday, according to a news release and a 424B5 filing with the Securities and Exchange Commission.
The company priced $500 million of 5.75% senior notes due March 1, 2028 at 99.705.
It also priced $750 million of 5.875% senior notes due March 1, 2033 at 99.508.
The notes with a 2028 maturity date were talked in the Treasuries plus 170 basis points area, a market source said.
The 2033 notes had talk in the Treasuries plus 200 bps area.
Both notes will have make-whole call options followed by par calls a number of months before each maturity date.
Any change of control would trigger a put at 101.
BofA Securities, Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and PNC Capital Markets LLC are the joint bookrunners for the SEC-registered deal.
Proceeds will be used to repay the company’s 2.9% senior notes due 2022 and its 3.15% senior notes due 2022. The remainder of proceeds will be used for general corporate purposes, which may include repaying commercial paper.
The health care and insurance company is based in Louisville, Ky.
| Issuer: | Humana Inc.
|
| Issue: | Senior notes
|
| Amount: | $1.25 billion
|
| Bookrunners: | BofA Securities, Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and PNC Capital Markets LLC
|
| Issuer’s counsel: | Fried, Frank, Harris, Shriver & Jacobson LLP
|
| Underwriters’ counsel: | Simpson Thacher & Bartlett LLP
|
| Trustee: | Bank of New York Mellon Trust Co., NA
|
| Pricing date: | Nov. 7
|
| Settlement date: | Nov. 22
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB+
|
| Fitch: BBB
|
|
|
| 2028 notes
|
| Amount: | $500 milion
|
| Maturity: | March 1, 2028
|
| Coupon: | 5.75%
|
| Price: | 99.705
|
| Talk: | Treasuries plus 170 bps area
|
|
|
| 2033 notes
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| Amount: | $750 milion
|
| Maturity: | March 1, 2033
|
| Coupon: | 5.875%
|
| Price: | 99.508
|
| Talk: | Treasuries plus 200 bps area
|
|
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