By Andrea Heisinger
New York, Dec. 14 - Aflac Inc. priced an upsized $400 million of 6.9% 30-year senior unsecured notes on Monday to yield Treasuries plus 250 basis points, a source away from the sale said.
The size was increased slightly from an original $350 million. The deal came at the tightest end of guidance of the 262.5 bps area, with a margin of plus or minus 12.5 bps.
The notes (A2/A-/) priced at 98.951 to yield 6.984%. They have a make-whole call at Treasuries plus 40 bps.
Goldman Sachs & Co. and J.P. Morgan Securities Inc. ran the books.
Proceeds are being used for general corporate purposes, including repayment of parent company Aflac's 0.71% samurai notes due in July 2010.
The parent of the supplemental health and life insurance company is based in Columbus, Ga.
| Issuer: | Aflac Inc.
|
| Issue: | Senior unsecured notes
|
| Amount: | $400 million, increased from $350 million
|
| Maturity: | Dec. 17, 2039
|
| Bookrunners: | Goldman Sachs & Co., J.P. Morgan Securities Inc.
|
| Coupon: | 6.9%
|
| Price: | 98.951
|
| Yield: | 6.984%
|
| Spread: | Treasuries plus 250 bps
|
| Call: | Make-whole at Treasuries plus 40 bps
|
| Trade date: | Dec. 14
|
| Settlement date: | Dec. 17
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A-
|
| Price talk: | 262.5 bps, plus or minus 12.5 bps
|
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