Published on 9/5/2019 in the Prospect News Investment Grade Daily.
New Issue: Anthem prices $2.5 billion of fixed-rate notes in three tranches
Chicago, Sept. 5 – Anthem, Inc. priced $2.5 billion of fixed-rate senior notes (Baa2/A/BBB) in three tranches, according to an FWP filed with the Securities and Exchange Commission.
The company sold $850 million of 2.375% notes due Jan. 15, 2025 at a spread of Treasuries plus 108 basis points. These notes priced at 99.912 to yield 2.393%.
Anthem priced $825 million of 2.875% 10-year notes with a 143 bps over Treasuries spread. These notes priced at 99.879 to yield 2.889%.
The $825 million tranche of 3.7% 30-year notes was placed at a spread of 178 bps over Treasuries. These notes priced at 99.389 to yield 3.734%.
BofA Securities, Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Barclays Capital Inc. (2029 notes). Morgan Stanley & Co. LLC (2049 notes) and Wells Fargo Securities, LLC (2025 notes) were the joint bookrunners.
Proceeds will be used general corporate purposes.
Indianapolis-based Anthem is a health benefits company.
| Issuer: | Anthem, Inc.
|
| Amount: | $2.5 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Securities, Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Barclays (2029 notes), Morgan Stanley & Co. LLC (2049 notes) and Wells Fargo Securities, LLC (2025 notes)
|
| Senior co-managers: | Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Mizuho Securities USA LLC, RBC Capital Markets, LLC, SunTrust Robinson Humphrey, Inc. and U.S. Bancorp Investments, Inc.
|
| Junior co-managers: | Fifth Third Securities, Inc., HSBC Securities (USA) Inc., PNC Capital Markets LLC and UBS Securities LLC
|
| Trade date: | Sept. 4
|
| Settlement date: | Sept. 9
|
| Ratings: | Moody’s: Baa2
|
| S&P: A
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| Notes due 2025
|
| Amount: | $850 million
|
| Maturity: | Jan. 15, 2025
|
| Coupon: | 2.375%
|
| Price: | 99.912
|
| Yield: | 2.393%
|
| Spread: | Treasuries plus 108 bps
|
| Call feature: | Make-whole call at Treasuries plus 20 bps until Dec. 15, 2024, then a par call
|
|
|
| Notes due 2029
|
| Amount: | $825 million
|
| Maturity: | Sept. 15, 2029
|
| Coupon: | 2.875%
|
| Price: | 99.879
|
| Yield: | 2.889%
|
| Spread: | Treasuries plus 143 bps
|
| Call feature: | Make-whole call at Treasuries plus 25 bps until June 15, 2029, then a par call
|
|
|
| Notes due 2049
|
| Amount: | $825 million
|
| Maturity: | Sept. 15, 2049
|
| Coupon: | 3.7%
|
| Price: | 99.389
|
| Yield: | 3.734%
|
| Spread: | Treasuries plus 178 bps
|
| Call feature: | Make-whole call at Treasuries plus 30 bps until March 15, 2049, then a par call
|
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