By Andrea Heisinger
New York, Aug. 4 - Aflac Inc. priced $750 million of senior unsecured notes (A2/A-/) in two tranches late on Wednesday, a syndicate source away from the sale said.
A $300 million tranche of 3.45% five-year notes sold at 99.926 to yield 3.466% with a spread of 185 basis points over Treasuries. The tranche was priced lower than guidance in the 200 bps area, the source said.
The five-year notes have a make-whole call of Treasuries plus 30 bps.
A $450 million tranche of 6.45% 30-year bonds priced at 99.499 to yield 6.488% with a spread of Treasuries plus 240 bps. This tranche also priced tighter than talk in the 250 bps area.
The 30-year bonds are callable at a make-whole amount of Treasuries plus 35 bps.
Bookrunners were Goldman Sachs & Co. and J.P. Morgan Securities Inc.
Proceeds are being used to repay the parent company's 1.52% Uridashi notes and variable interest rate Uridashi notes, both due in September 2011. The proceeds also will be used to repurchase common stock and for general corporate purposes.
The holding company for health and life insurance subsidiaries is based in Columbus, Ga.
| Issuer: | Aflac Inc.
|
| Issue: | Senior unsecured notes
|
| Amount: | $750 million
|
| Bookrunners: | Goldman Sachs & Co., J.P. Morgan Securities Inc.
|
| Trade date: | Aug. 4
|
| Settlement date: | Aug. 9
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A-
|
|
|
| Five-year notes
|
| Amount: | $300 million
|
| Maturity: | Aug. 15, 2015
|
| Coupon: | 3.45%
|
| Price: | 99.926
|
| Yield: | 3.466%
|
| Spread: | Treasuries plus 185 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
| Price talk: | 200 bps area
|
|
|
| 30-year bonds
|
| Amount: | $450 million
|
| Maturity: | Aug. 15, 2040
|
| Coupon: | 6.45%
|
| Price: | 99.499
|
| Yield: | 6.488%
|
| Spread: | Treasuries plus 240 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
| Price talk: | 250 bps area
|
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