By Cristal Cody
Tupelo, Miss., Feb. 27 – Anthem, Inc. priced $850 million of 4.55% 30-year notes (Baa2/A/BBB) on Tuesday to yield Treasuries plus 140 basis points, according to a market source.
The company sold the notes on the tight side of guidance in the Treasuries plus 145 bps area.
Credit Suisse Securities (USA) LLC, Barclays and Morgan Stanley & Co. LLC were the bookrunners.
In addition to the 30-year issue, selling noteholders will sell $1.25 billion of notes due 2028 in a remarketing of the securities for 1.9% remarketable subordinated notes, according to a 424B3 filing with the Securities and Exchange Commission.
Proceeds will be used for working capital and for general corporate purposes, including debt repayment or stock repurchases.
Indianapolis-based Anthem is a health benefits company.
| Issuer: | Anthem, Inc.
|
| Amount: | $850 million
|
| Description: | Notes
|
| Maturity: | March 1, 2048
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, Barclays and Morgan Stanley & Co. LLC
|
| Coupon: | 4.55%
|
| Spread: | Treasuries plus 140 bps
|
| Trade date: | Feb. 27
|
| Ratings: | Moody’s: Baa2
|
| S&P: A
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
| Price talk: | Treasuries plus 145 bps area
|
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