Published on 11/8/2022 in the Prospect News Investment Grade Daily.
New Issue: Humana details $1.25 billion of senior notes due in 2028, 2033
By Mary-Katherine Stinson
Lexington, Ky., Nov. 8 – Humana Inc. reported additional details regarding its $1.25 billion offering of senior notes sold in a two-part transaction (Baa3/BBB+/BBB) including the yields, spreads and call features, according to an FWP filing with the Securities and Exchange Commission.
The $500 million of 5.75% notes due March 1, 2028 priced at 99.705 to yield 5.818%, or at Treasuries plus 143 basis points after talk in the 170 bps area.
The $750 million of 5.875% notes due March 1, 2033 priced at 99.508 to yield 5.941%, or at Treasuries plus 173 basis points after talk in the 200 bps area.
The 2028 notes feature a make-whole call option at any time at Treasuries plus 25 bps, and a par call on or after Feb. 1, 2028. The 2033 notes feature a make-whole call option at any time at Treasuries plus 30 bps followed by a par call on or after Dec. 1, 2032.
BofA Securities, Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and PNC Capital Markets LLC are the active bookrunners for the SEC-registered deal. Barclays Capital Inc., Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and Wells Fargo Securities LLC join as passive bookrunners.
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
|
| Active bookrunners: | BofA Securities, Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and PNC Capital Markets LLC, Barclays, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and Wells Fargo Securities LLC
|
| Co-managers: | Truist Securities, Inc., U.S. Bancorp Investments, Inc., Academy Securities, Inc., BNY Mellon Capital Markets, LLC, Fifth Third Securities, Inc., KeyBanc Capital Markets Inc., Mizuho Securities USA LLC, R. Seelaus & Co., LLC, Regions Securities LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., TD Securities (USA) LLC and UMB Financial Services, Inc.
|
| 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
|
| Change of control: | At 101
|
| Pricing date: | Nov. 7
|
| Settlement date: | Nov. 22
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB+
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| 2028 notes
|
| Amount: | $500 million
|
| Maturity: | March 1, 2028
|
| Coupon: | 5.75%
|
| Price: | 99.705
|
| Yield: | 5.818%
|
| Spread: | Treasuries plus 143 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps; par call on or after Feb. 1, 2028
|
| Talk: | Treasuries plus 170 bps area
|
| Cusip: | 444859BU5
|
|
|
| 2033 notes
|
| Amount: | $750 million
|
| Maturity: | March 1, 2033
|
| Coupon: | 5.875%
|
| Price: | 99.508
|
| Yield: | 5.941%
|
| Spread: | Treasuries plus 173 bps
|
| Call features: | Make-whole call at Treasuries plus 30 bps; par call on or after Dec. 1, 2032
|
| Talk: | Treasuries plus 200 bps area
|
| Cusip: | 444859BV3
|
|
|
© 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.
