Published on 9/14/2016 in the Prospect News Investment Grade Daily.
New Issue: Aflac prices $700 million of senior notes due 2026, 2046
By Cristal Cody
Eureka Springs, Ark., Sept. 14 – Aflac Inc. sold $700 million of 10-year and 30-year senior notes (A3/A-/A-) on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
The company placed $300 million of 2.875% 10-year notes at 99.816 to yield 2.896%. The notes priced with a spread of Treasuries plus 120 basis points.
Aflac priced $400 million of 4% 30-year notes at 99.235 to yield 4.044%, or 160 bps over Treasuries.
The bookrunners were Goldman Sachs & Co., Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, BofA Merrill Lynch, MUFG and SMBC Nikko Securities America, Inc.
Aflac plans to use the proceeds from the offering to repay in full at maturity its $650 million outstanding of 2.65% senior notes due February 2017 that originally priced in 2012 and for general corporate purposes.
The Columbus, Ga.-based company provides supplemental health and life insurance.
| Issuer: | Aflac Inc.
|
| Amount: | $700 million
|
| Description: | Senior notes
|
| Bookrunners: | Goldman Sachs & Co., Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, BofA Merrill Lynch, MUFG, SMBC Nikko Securities America, Inc.
|
| Co-managers: | BNY Mellon Capital Markets, LLC, J.P. Morgan Securities LLC
|
| Trade date: | Sept. 14
|
| Settlement date: | Sept. 19
|
| Ratings: | Moody’s: A3
|
| S&P: A-
|
| Fitch: A-
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $300 million
|
| Maturity: | Oct. 15, 2026
|
| Coupon: | 2.875%
|
| Price: | 99.816
|
| Yield: | 2.896%
|
| Spread: | Treasuries plus 120 bps
|
| Call features: | Make-whole call before July 15, 2026 at Treasuries plus 20 bps; on or after July 15, 2026, at par
|
|
|
| 30-year notes
|
| Amount: | $400 million
|
| Maturity: | Oct. 15, 2046
|
| Coupon: | 4%
|
| Price: | 99.235
|
| Yield: | 4.044%
|
| Spread: | Treasuries plus 160 bps
|
| Call features: | Make-whole call before April 15, 2046 at Treasuries plus 25 bps; on or after April 15, 2046 at par
|
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