Aetna extends credit facility by one year to 2020, amends pricing

By Marisa Wong

Madison, Wis., March 5 – Aetna Inc. entered into a second amendment to its five-year credit agreement dated March 27, 2012 to extend the maturity date to March 27, 2020, according to an 8-K filing with the Securities and Exchange Commission.

The credit facility, previously amended on Sept. 24, 2012, was set to mature on March 27, 2019.

The second amendment, completed on March 2, also modifies the applicable facility fee and the applicable interest rate on Libor loans if Aetna’s credit ratings are higher than its existing ratings.

Interest now ranges from Libor plus 70 basis points to Libor plus 135 bps, and the facility fee ranges from 5 bps to 15 bps.

As a result of these changes, if Aetna’s credit ratings were to improve, the undrawn cost of maintaining the credit facility would be reduced, and the drawn cost under the facility would be no greater than under the existing credit agreement.

JPMorgan Chase Bank, NA is the administrative agent.

The diversified health care benefits company is based in Hartford, Conn.

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