By Rebecca Melvin and Cristal Cody
New York, March 9 – Anthem, Inc. priced $3.5 billion of fixed-rate notes (Baa2/A/BBB) in four tranches, according to an FWP filed with the Securities and Exchange Commission.
The company sold $500 million of 0.45% notes due March 15, 2023 at 99.974 to yield 0.463%, or a spread of Treasuries plus 30 basis points. Initial price talk for the notes was for a spread in the area of Treasuries plus 60 bps.
Anthem priced $750 million of 1.5% notes due March 14, 2026 at 99.737 to yield 1.555%, or a 70-bps spread over Treasuries. The notes had been talked with a spread in the Treasuries plus 85 bps area.
The $1 billion tranche of 2.55% 10-year notes was reoffered at 99.615 to yield 2.594%, or a spread of 100 bps over Treasuries. This tranche was talked in the Treasuries plus 120 bps area.
The $1.25 billion tranche of 3.6% 30-year notes priced at 99.636 to yield 3.62%, or a spread of 130 bps over Treasuries. The 2051 notes had been talked in a range of the Treasuries plus 145 bps to 150 bps area.
All of the notes have a make-whole call, which is until maturity at Treasuries plus 5 bps for the 2023 notes, until one month prior to maturity at Treasuries plus 15 bps for the 2026 notes, until three months prior to maturity at Treasuries plus 15 bps for the 2031 notes and until six months prior to maturity at Treasuries plus 20 bps for the 2051 notes, then a par call for all of the notes except the 2023 notes.
Citigroup Global Markets Inc., Barclays, J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC were the joint bookrunners.
Senior co-managers were BofA Securities Inc., Deutsche Bank Securities Inc., Mizuho Securities USA LLC, Truist Securities Inc., UBS Securities LLC, U.S. Bancorp Investments Inc., and Wells Fargo Securities LLC. The junior co-managers were Fifth Third Securities Inc. and PNC Capital Markets LLC.
Proceeds will be used for working capital and general corporate purposes.
Indianapolis-based Anthem is a health benefits company.
| Issuer: | Anthem, Inc.
|
| Amount: | $3.5 billion
|
| Description: | Notes
|
| Bookrunners: | Citigroup Global Markets Inc., Barclays Capital Inc., J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC
|
| Senior co-managers: | BofA Securities Inc., Deutsche Bank Securities Inc., Mizuho Securities USA LLC, Truist Securities Inc., UBS Securities LLC, U.S. Bancorp Investments Inc., and Wells Fargo Securities LLC
|
| Junior co-managers: | Fifth Third Securities Inc. and PNC Capital Markets LLC
|
| Trade date: | March 8
|
| Settlement date: | March 17
|
| Ratings: | Moody’s: Baa2
|
| S&P: A
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| Notes due 2023
|
| Amount: | $500 million
|
| Maturity: | March 15, 2023
|
| Coupon: | 0.45%
|
| Price: | 99.974
|
| Yield: | 0.463%
|
| Spread: | Treasuries plus 30 bps
|
| Call feature: | Make-whole call until maturity at Treasuries plus 5 bps
|
| Talk: | Treasuries plus 60 bps area
|
|
|
| Notes due 2026
|
| Amount: | $750 million
|
| Maturity: | March 15, 2026
|
| Coupon: | 1.5%
|
| Price: | 99.737
|
| Yield: | 1.555%
|
| Spread: | Treasuries plus 70 bps
|
| Call feature: | Make-whole call until one month prior to maturity at Treasuries plus 15 bps, then par call
|
| Talk: | Treasuries plus 85 bps area
|
|
|
| Notes due 2031
|
| Amount: | $1 billion
|
| Maturity: | March 15, 2031
|
| Coupon: | 2.55%
|
| Price: | 99.615
|
| Yield: | 2.594%
|
| Spread: | Treasuries plus 100 bps
|
| Call feature: | Make-whole call until three months prior to maturity at Treasuries plus 15 bps, then par call
|
| Talk: | Treasuries plus 120 bps area
|
|
|
| Notes due 2051
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| Amount: | $1.25 billion
|
| Maturity: | March 15, 2051
|
| Coupon: | 3.6%
|
| Price: | 99.636
|
| Yield: | 3.62%
|
| Spread: | Treasuries plus 130 bps
|
| Call feature: | Make-whole call until six months prior to maturity at Treasuries plus 20 bps, then par call
|
| Talk: | Treasuries plus 145 bps to 150 bps area
|
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