Humana signs for $4 billion revolvers with 364-day, five-year tenors

Chicago, June 2 – Humana Inc. signed for $4 billion of revolving credit facilities broken into two parts on June 2, according to an 8-K filing with the Securities and Exchange Commission.

The company entered into an agreement for a $1.5 billion 364-day revolving credit facility and a $2.5 billion five-year revolving credit agreement.

There is a combined $750 million accordion.

At signing, there were no borrowings drawn on either agreement and $21 million was issued and undrawn in letters of credit on the five-year agreement.

Interest on the 364-day facility is based on a five-tier ratings grid of SOFR+10 basis points CSA and a margin ranging from 94 bps to 135 bps. The facility fee will be between 6 bps and 15 bps.

The five-year revolver has a five-tier ratings grid of SOFR plus 10 bps CSA and a margin ranging from 92 bps to 130 bps. The facility fee is between 8 bps and 20 bps.

For both facilities, JPMorgan Chase Bank, NA is the agent. Bank of America, NA is the syndication agent. Citibank, NA, Goldman Sachs Bank USA, PNC Capital Markets LLC, U.S. Bank, NA and Wells Fargo Securities, LLC are the documentation agents. JPMorgan Chase Bank, NA, BofA Securities, Inc., Citibank, NA, Goldman Sachs Bank USA, PNC Capital Markets LLC, U.S. Bank, NA and Wells Fargo Securities, LLC are the joint lead arrangers and joint bookrunners.

Proceeds will be used for general corporate purposes.

The 364-day revolver places a $1.5 billion revolver from June 3, 2022. The five-year revolver replaces a $2.5 billion revolver from June 4, 2021.

Humana is a health insurance company based in Louisville, Ky.

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