Published on 12/14/2017 in the Prospect News Investment Grade Daily.
New Issue: Humana sells $800 million of three-, five-year notes in two tranches
By Devika Patel
Knoxville, Tenn., Dec. 14 – Humana Inc. priced an $800 million offering of senior notes (Baa3/BBB+/BBB) in two tranches on Thursday, according to an FWP filing with the Securities and Exchange Commission.
The company sold $400 million of 2.5% three-year notes at 99.946 to yield 2.519%, or 60 basis points over Treasuries.
Humana priced $400 million of 2.9% five-year notes at 80 bps over Treasuries. These notes were priced at 99.83 to yield 2.937%.
BofA Merrill Lynch, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are the bookrunners.
Proceeds will be used for general corporate purposes.
Humana is a health care and insurance company based in Louisville, Ky.
| Issuer: | Humana Inc.
|
| Amount: | $800 million
|
| Description: | Senior notes
|
| Bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC
|
| Senior co-managers: | PNC Capital Markets LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC
|
| Co-managers: | Barclays, BB&T Capital Markets, Goldman Sachs & Co., Morgan Stanley & Co. LLC, BNY Mellon Capital Markets LLC, Fifth Third Securities Inc. and UMB Financial Services, Inc.
|
| Trade date: | Dec. 14
|
| Settlement date: | Dec. 21
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB+
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| Three-year bonds
|
| Amount: | $400 million
|
| Maturity: | Dec. 15, 2020
|
| Coupon: | 2.5%
|
| Price: | 99.946
|
| Yield: | 2.519%
|
| Spread: | Treasuries plus 60 bps
|
| Call feature: | Make-whole call at Treasuries plus 10 bps
|
|
|
| Five-year bonds
|
| Amount: | $400 million
|
| Maturity: | Dec. 15, 2022
|
| Coupon: | 2.9%
|
| Price: | 99.83
|
| Yield: | 2.937%
|
| Spread: | Treasuries plus 80 bps
|
| Call feature: | Make-whole call at Treasuries plus 15 bps until Nov. 15, 2022 and then a par call
|
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