By Cristal Cody
Chicago, May 17 – UnitedHealth Group Inc. sold $7 billion of notes in five parts (A3/A+/A) on Monday, according to a market source.
The final order book on the deal was more than $23 billion, the source told Prospect News.
The offer includes:
• $1 billion of 0.55% three-year notes, which priced at 99.896 to yield 0.585%, or a spread over Treasuries of 25 basis points;
• $1 billion of 1.15% five-year notes, which priced at 99.826 to yield 1.186% for a spread of Treasuries plus 35 bps;
• $1.5 billion of 2.3% notes due May 15, 2031, which came at 99.991 to yield 2.301%, or a spread of Treasuries plus 65 bps;
• A second $1.5 billion tranche, this time with a 3.05% coupon and a May 15, 2041 maturity date, priced at 99.57 to yield 3.079% for a Treasuries plus 80 bps spread; and
• $2 billion of 3.25% 30-year notes priced at 99.355 to yield 3.284%, or a spread of 90 bps over Treasuries.
Citigroup Global Markets Inc., BofA Securities, Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, PNC Capital Markets LLC and Wells Fargo Securities, LLC are the joint bookrunners, according to a 424B5 filing with the Securities and Exchange Commission.
Proceeds will be used for general corporate purposes, which may include refinancing short-term borrowings incurred for general corporate and working capital purposes or redeeming outstanding securities. As of March 31, the company had about $8.5 billion of short-term borrowings outstanding with a weighted-average annual interest rate of 0.7%.
The health care company is based in Minnetonka, Minn.
| Issuer: | UnitedHealth Group Inc.
|
| Issue: | Notes
|
| Amount: | $7 billion
|
| Bookrunners: | Citigroup Global Markets Inc., BofA Securities, Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, PNC Capital Markets LLC and Wells Fargo Securities, LLC
|
| Trade date: | May 17
|
| Ratings: | Moody’s: A3
|
| S&P: A+
|
| Fitch: A
|
|
|
| 2024 notes
|
| Amount: | $1 billion
|
| Maturity: | May 15, 2024
|
| Coupon: | 0.55%
|
| Price: | 99.896
|
| Yield: | 0.585%
|
| Spread: | Treasuries plus 25 bps
|
|
|
| 2026 notes
|
| Amount: | $1 billion
|
| Maturity: | May 15, 2026
|
| Coupon: | 1.15%
|
| Price: | 99.826
|
| Yield: | 1.186%
|
| Spread: | Treasuries plus 35 bps
|
|
|
| 2031 notes
|
| Amount: | $1.5 billion
|
| Maturity: | May 15, 2031
|
| Coupon: | 2.3%
|
| Price: | 99.991
|
| Yield: | 2.301%
|
| Spread: | Treasuries plus 65 bps
|
|
|
| 2041 notes
|
| Amount: | $1.5 billion
|
| Maturity: | May 15, 2041
|
| Coupon: | 3.05%
|
| Price: | 99.57
|
| Yield: | 3.079%
|
| Spread: | Treasuries plus 80 bps
|
|
|
| 2051 notes
|
| Amount: | $2 billion
|
| Maturity: | May 15, 2051
|
| Coupon: | 3.25%
|
| Price: | 99.355
|
| Yield: | 3.284%
|
| Spread: | Treasuries plus 90 bps
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
