By Andrea Heisinger
New York, Sept. 9 - Aetna Inc. priced an upsized $500 million of 6.5% 10-year senior notes Tuesday to yield Treasuries plus 295 basis points, an informed source said.
The offering was upsized from a planned $350 million.
The notes (A3/A-/A-) priced at 99.716 to yield 6.539%.
There is a make-whole redemption option of Treasuries plus 45 bps.
The notes feature a change-of-control put of 101%.
The issue priced at the tight end of talk of 300 bps area, a source said.
Bookrunners were Banc of America Securities LLC, Citigroup Global Markets Inc. and J.P. Morgan Securities Inc.
Senior co-managers were Barclays Capital Inc., Credit Suisse Securities, Goldman Sachs & Co., Morgan Stanley & Co., Inc., RBS Greenwich Capital, UBS Investment Bank and Wachovia Capital Markets.
Co-managers were Bank of New York Capital Markets, Fifth Third Securities, Lazard Capital Markets, Lehman Brothers Inc., National City Investments, Piper Jaffray, PNC Capital Markets, SunTrust Robinson Humphrey and Wells Fargo Securities.
Proceeds will be used to repay outstanding commercial paper, of which the company has about $854 million.
The diversified health care benefits company is based in Hartford, Conn.
| Issuer: | Aetna Inc.
|
| Issue: | Senior notes
|
| Amount: | $500 million
|
| Maturity: | Sept. 15, 2018
|
| Bookrunners: | Banc of America Securities LLC, Citigroup Global Markets Inc. and J.P. Morgan Securities Inc.
|
| Senior co-managers: | Barclays Capital Inc., Credit Suisse Securities, Goldman Sachs & Co., Morgan Stanley & Co., Inc., RBS Greenwich Capital, UBS Investment Bank, Wachovia Capital Markets
|
| Co-managers: | Bank of New York Capital Markets, Fifth Third Securities, Lazard Capital Markets, Lehman Brothers Inc., National City Investments, Piper Jaffray, PNC Capital Markets, SunTrust Robinson Humphrey, Wells Fargo Securities
|
| Coupon: | 6.5%
|
| Price: | 99.716
|
| Yield: | 6.539%
|
| Spread: | Treasuries plus 295 bps
|
| Call: | Make-whole at Treasuries plus 45 bps
|
| Change-of-control put: | 101%
|
| Trade date: | Sept. 9
|
| Settlement date: | Sept. 12
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A-
|
| Fitch: A-
|
| Price talk: | 300 bps area
|
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