Chicago, April 30 – Anthem, Inc. priced $2.5 billion of fixed-rate senior notes (Baa2/A/BBB) in three tranches on Thursday, according to an FWP filed with the Securities and Exchange Commission and a market source.
The company sold $400 million of 2.375% notes due Jan. 15, 2025 at a spread of Treasuries plus 140 basis points. These notes priced at 102.801 to yield 1.74%.
This tranche was an add-on, first issued in an $850 million offering on Sept. 9, 2019. The reopened notes had initial talk at the 175 bps over Treasuries area.
Anthem additionally priced $1.1 billion of 2.25% notes due May 15, 2030 with a 170 bps over Treasuries spread. These notes priced at 99.625 to yield 2.292%.
Initial talk on the 2030 notes was in the Treasuries plus 210 bps area.
Also, Anthem sold $1 billion of 3.125% notes due May 15, 2050 at a spread of 190 bps over Treasuries. These notes priced at 99.748 to yield 3.138%.
Talk on the 2050 notes was in the 230 bps spread area.
BofA Securities, Inc., Wells Fargo Securities, LLC, Deutsche Bank Securities Inc., Citigroup Global Markets Inc. and U.S. Bancorp Investments, Inc. are the joint bookrunners.
Co-managers are Barclays, Credit Suisse Securities (USA) LLC. Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, PNC Capital Markets LLC and SunTrust Robinson Humphrey, Inc.
Junior co-managers are Fifth Third Securities, Inc. and UBS Securities LLC.
Proceeds will be used for working capital and general corporate purposes.
Anthem is a health benefits company based in Indianapolis.
| Issuer: | Anthem, Inc.
|
| Amount: | $2.5 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Securities, Inc., Wells Fargo Securities, LLC, Deutsche Bank Securities Inc., Citigroup Global Markets Inc. and U.S. Bancorp Investments, Inc.
|
| Senior co-managers: | Barclays, Credit Suisse Securities (USA) LLC. Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, PNC Capital Markets LLC and SunTrust Robinson Humphrey, Inc.
|
| Junior co-managers: | Fifth Third Securities, Inc. and UBS Securities LLC
|
| Pricing date: | April 30
|
| Settlement date: | May 5
|
| Ratings: | Moody’s: Baa2
|
| S&P: A
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| Notes due 2025 add-on
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| Amount: | $400 million
|
| Maturity: | Jan. 15, 2025
|
| Coupon: | 2.375%
|
| Price: | 102.801
|
| Yield: | 1.740%
|
| Spread: | Treasuries plus 140 bps
|
| Call feature: | Make-whole call at Treasuries plus 20 bps until Dec. 15, 2024, then a par call
|
|
|
| Notes due 2030
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| Amount: | $1.1 billion
|
| Maturity: | May 15, 2030
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| Coupon: | 2.25%
|
| Price: | 99.625
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| Yield: | 2.292%
|
| Spread: | Treasuries plus 170 bps
|
| Call feature: | Make-whole call at Treasuries plus 30 bps until Feb. 15, 2030, then a par call
|
|
|
| Notes due 2050
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| Amount: | $1 billion
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| Maturity: | May 15, 2050
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| Coupon: | 3.125%
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| Price: | 99.748
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| Yield: | 3.138%
|
| Spread: | Treasuries plus 190 bps
|
| Call feature: | Make-whole call at Treasuries plus 30 bps until Nov. 15, 2049, then a par call
|
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