By Andrea Heisinger
New York, Aug. 24 - Aetna Inc. priced an upsized $750 million of 3.95% 10-year senior unsecured notes on Tuesday to yield Treasuries plus 160 basis points, a source close to the sale said.
The size was increased from $500 million, and the sale was priced in line with talk of 160 bps.
The notes (Baa1/A-/A-) priced at 98.859 to yield 4.09%.
There is a make-whole call of Treasuries plus 25 bps and a change-of-control put of 101%.
Barclays Capital Inc., RBS Securities Inc. and UBS Investment Bank ran the books.
Senior co-managers were Bank of America Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., J.P. Morgan Securities Inc., Morgan Stanley & Co. Inc., U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC.
Co-managers were BNY Mellon Capital Markets, LLC, Mitsubishi UFJ Securities (USA), Inc., Fifth Third Securities, Inc., PNC Capital Markets LLC and SunTrust Robinson Humphrey, Inc.
Proceeds will be used for general corporate purposes, including repayment of debt.
Aetna's last sale was $500 million of 6.5% 10-year senior notes on Sept. 9, 2008. Those notes priced at a much-higher spread of 295 bps over Treasuries.
The health care benefits company is based in Hartford, Conn.
| Issuer: | Aetna Inc.
|
| Issue: | Senior unsecured notes
|
| Amount: | $750 million, increased from $500 million
|
| Maturity: | Sept. 1, 2020
|
| Bookrunners: | Barclays Capital Inc., RBS Securities Inc., UBS Investment Bank
|
| Senior co-managers: | Bank of America Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., J.P. Morgan Securities Inc., Morgan Stanley & Co. Inc., U.S. Bancorp Investments, Inc.,Wells Fargo Securities, LLC.
|
| Co-managers: | BNY Mellon Capital Markets, LLC, Mitsubishi UFJ Securities (USA), Inc., Fifth Third Securities, Inc., PNC Capital Markets LLC, SunTrust Robinson Humphrey, Inc.
|
| Coupon: | 3.95%
|
| Price: | 98.859
|
| Yield: | 4.09%
|
| Spread: | Treasuries plus 160 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Change-of-control put: | 101%
|
| Trade date: | Aug. 24
|
| Settlement date: | Aug. 27
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: A-
|
| Fitch: A-
|
| Price talk: | 160 bps
|
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