New Issue: Aflac prices $550 million 4.75% 30-year senior notes at Treasuries plus 145 bps

By Cristal Cody

Tupelo, Miss., Oct. 29 – Aflac Inc. sold $550 million of 4.75% 30-year senior notes (A3/A-) on Monday at 99.34 to yield 4.792%, or a spread of 145 basis points over Treasuries, according to a market source and an FWP filing with the Securities and Exchange Commission.

The notes priced tighter than initial talk in the Treasuries plus 155 bps area.

The bookrunners were Goldman Sachs & Co. LLC, BofA Merrill Lynch, Mizuho Securities USA Inc., SMBC Nikko Securities America, Inc., Wells Fargo Securities LLC, Morgan Stanley & Co. LLC and MUFG.

Aflac plans to use the proceeds to fund the $550 million redemption of 2.4% senior notes due 2020 and for general corporate purposes.

The Columbus, Ga.-based company provides supplemental health and life insurance.

Issuer:	Aflac Inc.
Amount:	$550 million
Maturity:	Jan. 15, 2049
Description:	Senior notes
Bookrunners:	Goldman Sachs & Co. LLC, BofA Merrill Lynch, Mizuho Securities USA Inc., SMBC Nikko Securities America, Inc., Wells Fargo Securities LLC, Morgan Stanley & Co. LLC and MUFG
Co-managers:	J.P. Morgan Securities LLC, Academy Securities, Inc. and Drexel Hamilton, LLC
Coupon:	4.75%
Price:	99.34
Yield:	4.792%
Spread:	Treasuries plus 145 bps
Call feature:	Make-whole call before July 15, 2048 at Treasuries plus 25 bps; thereafter at par
Trade date:	Oct. 29
Settlement date:	Oct. 31
Ratings:	Moody’s: A3
	S&P: A-
Distribution:	SEC registered
Price guidance:	Treasuries plus 155 bps area

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