By Aleesia Forni
Virginia Beach, Sept. 16 – Humana Inc. sold $1.75 billion of senior notes (Baa3/BBB+/BBB) in tranches due 2019, 2024 and 2044, according to a market source and a FWP filed with the Securities and Exchange Commission.
The sale included $400 million of 2.625% notes due 2019 priced at Treasuries plus 85 basis points.
The notes sold on top of talk, which had tightened from initial guidance set in the Treasuries plus 100 bps area.
Pricing was at 99.995 to yield 2.626%.
A $600 million tranche of notes due 2024 sold at 99.867 to yield 3.866% with a spread of Treasuries plus 127 bps
The notes sold at the tight end of the Treasuries plus 130 bps area talked, which tightened from guidance set in the Treasuries plus 135 bps area.
A third tranche was $750 million of 4.95% bonds due 2044 sold at 99.518 to yield 4.981%, or Treasuries plus 162 bps.
Pricing was at the tight end of talk, which was set in the 165 bps area over Treasuries.
Talk was tightened from earlier guidance set in the Treasuries plus 170 bps area.
Bookrunners were Barclays, BofA Merrill Lynch, J.P. Morgan Securities LLC and Wells Fargo Securities LLC.
Proceeds will be used to redeem the company’s $500 million of 6.45% senior notes due June 1, 2016, to repurchase shares of common stock and for general corporate purposes.
The health care and insurance company is based in Louisville, Ky.
| Issuer: | Humana Inc.
|
| Issue: | Senior notes
|
| Amount: | $1.75 billion
|
| Joint bookrunners: | Barclays, BofA Merrill Lynch, J.P. Morgan Securities LLC, Wells Fargo Securities LLC
|
| Co-managers: | Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, U.S. Bancorp Investments, Inc., BB&T Capital Markets, BNY Mellon Capital Markets, LLC, Credit Suisse Securities (USA) LLC, Fifth Third Securities, Inc., Goldman Sachs & Co., PNC Capital Markets LLC, UMB Financial Services, Inc.
|
| Trade date: | Sept. 16
|
| Settlement date: | Sept. 19
|
| Ratings: | Moody’s: Baa3
|
| Standard & Poor’s: BBB+
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $400 million
|
| Maturity: | Oct. 1, 2019
|
| Coupon: | 2.625%
|
| Price: | 99.995
|
| Yield: | 2.626%
|
| Spread: | Treasuries plus 85 bps
|
| Price talk: | Treasuries plus 85 bps, tightened from Treasuries plus 100 bps area
|
| Make-whole call: | Treasuries plus 15 bps
|
|
|
| 10-year notes
|
| Amount: | $600 million
|
| Maturity: | Oct. 1, 2024
|
| Coupon: | 3.85%
|
| Price: | 99.867
|
| Yield: | 3.866%
|
| Spread: | Treasuries plus 127 bps
|
| Price talk: | Treasuries plus 130 bps area, tightened from Treasuries plus 135 bps area
|
| Make-whole call: | Treasuries plus 20 bps prior to July 1, 2024, then callable at par
|
|
|
| 30-year notes
|
| Amount: | $750 million
|
| Maturity: | Oct. 1, 2044
|
| Coupon: | 4.95%
|
| Price: | 99.518
|
| Yield: | 4.981%
|
| Spread: | Treasuries plus 162 bps
|
| Price talk: | Treasuries plus 165 bps area, tightened from Treasuries plus 170 bps area
|
| Make-whole call: | Treasuries plus 25 bps prior to April 1, 2044, then callable at par
|
© 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.
