Published on 2/28/2018 in the Prospect News Investment Grade Daily.
New Issue: Anthem details $850 million 4.55% notes, remarkets $1.25 billion notes
By Cristal Cody
Tupelo, Miss., Feb. 27 – Anthem, Inc. offered further details about an $850 million sale of 4.55% 30-year notes (Baa2/A/BBB) which priced on Tuesday to yield Treasuries plus 140 basis points, according to an FWP filed with the Securities and Exchange Commission. The company also remarketed $1.25 billion of its 1.9% remarketable subordinated notes due 2028.
The company sold the 4.55% notes on the tight side of guidance in the Treasuries plus 145 bps area. The notes priced at 99.659 to yield 4.571%.
In addition to the 30-year issue, selling noteholders sold $1.25 billion of notes due 2028 in a remarketing of the securities for 1.9% remarketable subordinated notes. The coupon is 4.101%, and the notes priced at par and were sold at Treasuries plus 120 bps.
Credit Suisse Securities (USA) LLC, Barclays and Morgan Stanley & Co. LLC were the bookrunners.
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.
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| Amount: | $2.1 billion
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| Description: | Notes
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| Bookrunners: | Credit Suisse Securities (USA) LLC, Barclays and Morgan Stanley & Co. LLC
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| Trade date: | Feb. 27
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| Trade date: | March 2
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| Ratings: | Moody’s: Baa2
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| S&P: A
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| Fitch: BBB
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| Distribution: | SEC registered
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| Price talk: | Treasuries plus 145 bps area
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| 30-year notes
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| Amount: | $850 million
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| Maturity: | March 1, 2048
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| Coupon: | 4.55%
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| Price: | 99.659
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| Yield: | 4.571%
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| Spread: | Treasuries plus 140 bps
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| Call: | Make-whole call at Treasuries plus 25 bps until Sept. 1, 2047, then a par call
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| Senior co-managers: | Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. and Wells Fargo Securities LLC, HSBC Securities (USA) Inc., SunTrust Robinson Humphrey Inc. and U.S. Bancorp Investments Inc.
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| Junior co-managers: | BNY Mellon Capital Markets LLC, PNC Capital Markets LLC, RBC Capital Markets Corp., SMBC Nikko Securities America, Inc. and Huntington Investment Co.
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| Remarketed notes
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| Amount: | $1.25 billion
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| Maturity: | March 1, 2028
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| Coupon: | 4.101%
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| Price: | Par
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| Spread: | Treasuries plus 120 bps
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| Call: | Make-whole call at Treasuries plus 20 bps until Dec. 1, 2027, then a par call
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| Senior co-managers: | Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. and Wells Fargo Securities LLC
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