By Cristal Cody
Tupelo, Miss., Sept. 6 – Cigna Corp. priced $20 billion of senior notes (Baa1/A-/BBB) in 10 tranches on Thursday via future parent company Halfmoon Parent, Inc., according to a market source.
At the top of the deal, the issuer sold $1 billion of floating-rate notes due March 17, 2020 at Libor plus 35 basis points.
Halfmoon priced $1.75 billion of 3.2% two-year fixed-rate notes with a spread of Treasuries plus 60 bps.
The company sold $1 billion of three-year floating-rate notes at Libor plus 65 bps and a $1.25 billion tranche of 3.4% three-year fixed-rate notes at a spread of 70 bps over Treasuries.
A $700 million tranche of five-year floating-rate notes priced at Libor plus 89 bps.
Halfmoon also sold $3.1 billion of 3.75% five-year fixed-rate notes with a Treasuries plus 102 bps spread.
The company placed $2.2 billion of 4.125% seven-year notes at a 132 bps over Treasuries spread.
A $3.8 billion tranche of 4.375% 10-year notes came at a spread of 152 bps over Treasuries.
Halfmoon sold $2.2 billion of 4.8% 20-year notes at a Treasuries plus 177 bps spread.
In the final tranche, the company priced $3 billion of 4.9% 30-year bonds with a spread of 187 bps over Treasuries.
BofA Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC were the active bookrunners.
Halfmoon, currently a subsidiary of Cigna, will become the parent of Cigna following its $67 billion cash, stock and debt acquisition of Express Scripts Holding Co.
Proceeds from the offering will be used to fund the cash portion of the merger, which is expected to close by the end of the year.
Cigna is a Bloomfield, Conn.-based health service company.
| Issuer: | Halfmoon Parent, Inc.
|
| Amount: | $20 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC
|
| Passive bookrunners: | Citigroup Global Markets Inc. and MUFG
|
| Trade date: | Sept. 6
|
| Ratings: | Moody’s: Baa1
|
| S&P: A-
|
| Fitch: BBB
|
| Distribution: | Rule 144A
|
| Marketing: | Roadshow
|
|
|
| 30-month notes
|
| Amount: | $1 billion
|
| Maturity: | March 17, 2020
|
| Coupon: | Libor plus 35 bps
|
|
|
| Two-year notes
|
| Amount: | $1.75 billion
|
| Maturity: | Sept. 17, 2020
|
| Coupon: | 3.2%
|
| Spread: | Treasuries plus 60 bps
|
|
|
| Three-year floaters
|
| Amount: | $1 billion
|
| Maturity: | Sept. 17, 2021
|
| Coupon: | Libor plus 65 bps
|
|
|
| Three-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | Sept. 17, 2021
|
| Coupon: | 3.4%
|
| Spread: | Treasuries plus 70 bps
|
|
|
| Five-year floaters
|
| Amount: | $700 million
|
| Maturity: | July 15, 2023
|
| Coupon: | Libor plus 89 bps
|
|
|
| Five-year notes
|
| Amount: | $3.1 billion
|
| Maturity: | July 15, 2023
|
| Coupon: | 3.75%
|
| Spread: | Treasuries plus 102 bps
|
|
|
| Seven-year notes
|
| Amount: | $2.2 billion
|
| Maturity: | Nov. 15, 2025
|
| Coupon: | 4.125%
|
| Spread: | Treasuries plus 132 bps
|
|
|
| 10-year notes
|
| Amount: | $3.8 billion
|
| Maturity: | Oct. 15, 2028
|
| Coupon: | 4.375%
|
| Spread: | Treasuries plus 152 bps
|
|
|
| 20-year notes
|
| Amount: | $2.2 billion
|
| Maturity: | Aug. 15, 2038
|
| Coupon: | 4.8%
|
| Spread: | Treasuries plus 177 bps
|
|
|
| 30-year notes
|
| Amount: | $3 billion
|
| Maturity: | Dec. 15, 2048
|
| Coupon: | 4.9%
|
| Spread: | Treasuries plus 187 bps
|
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