Humana to price two-part offering of fixed-rate senior notes

By Marisa Wong

Los Angeles, Feb. 27 – Humana Inc. plans to price fixed-rate senior notes in two tranches, according to a 424B5 filing with the Securities and Exchange Commission.

The notes will have a make-whole call option followed by a par call option. The notes will also be putable at 101 if a change-of-control triggering event occurs.

Barclays, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC are the joint bookrunners.

Bank of New York Mellon Trust Co., NA is the trustee.

Fried, Frank, Harris, Shriver & Jacobson LLP will act as counsel for the issuer. Counsel to the underwriters is provided by Simpson Thacher & Bartlett LLP.

The company intends to use proceeds from the offering to repay outstanding amounts under its $500 million delayed-draw term loan. Any remaining proceeds will be used for general corporate purposes, which may include the repayment of borrowings under the company’s commercial paper program.

Humana is a health insurance company based in Louisville, Ky.

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