By Andrea Heisinger
New York, Feb. 9 - Aflac Inc. gave the terms of its $750 million of senior notes (A3/A-/) priced in two tranches on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
A $400 million tranche of 2.65% five-year paper sold at 99.911 to yield 2.669% with a spread of Treasuries plus 185 basis points. There is a make-whole call at Treasuries plus 30 bps.
There was also a $350 million tranche of 4% 10-year notes priced at 99.82 to yield 4.022% with a spread of Treasuries plus 205 bps. The notes have a make-whole redemption at 35 bps over Treasuries.
Goldman Sachs & Co. and J.P. Morgan Securities LLC were the bookrunners.
Co-manager was Morgan Stanley & Co. LLC.
Proceeds are being used to repay in full at maturity $347 million of the parent company's 1.87% Samurai notes due in June. Any remainder will be used for general corporate purposes, including capital contributions to subsidiaries if needed.
Aflac last priced bonds in a $750 million deal of five- and 30-year notes on Aug. 4, 2010. The 3.45% five-year notes from that deal were priced at 185 bps over Treasuries.
The holding company for supplemental health and life insurance subsidiaries is based in Columbus, Ga.
Issuer: | Aflac Inc.
|
Issue: | Senior notes
|
Amount: | $750 million
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Bookrunners: | Goldman Sachs & Co., J.P. Morgan Securities LLC
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Co-manager: | Morgan Stanley & Co. LLC
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Trade date: | Feb. 8
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Settlement date: | Feb. 10
|
Ratings: | Moody's: A3
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| Standard & Poor's: A-
|
|
Five-year notes
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Amount: | $400 million
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Maturity: | Feb. 15, 2017
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Coupon: | 2.65%
|
Price: | 99.911
|
Yield: | 2.669%
|
Spread: | Treasuries plus 185 bps
|
Call: | Make-whole at Treasuries plus 30 bps
|
|
10-year notes
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Amount: | $350 million
|
Maturity: | Feb. 15, 2022
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Coupon: | 4%
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Price: | 99.82
|
Yield: | 4.022%
|
Spread: | Treasuries plus 205 bps
|
Call: | Make-whole at Treasuries plus 35 bps
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