UnitedHealth Group plans to offer six tranches of senior notes

By Mary-Katherine Stinson

Lexington, Ky., March 19 – UnitedHealth Group Inc. plans to offer senior notes (A2) in six tranches, according to a 424B2 filing with the Securities and Exchange Commission.

The estimated size of the offering is $5 billion, according to a Moody’s Ratings news release.

Each of the notes feature a make-whole call option until some months before the maturity date and, after the respective par call date, will be redeemable at par.

Any change of control would trigger a put option at 101.

BofA Securities, Inc., Barclays, J.P. Morgan Securities LLC and Mizuho Securities USA LLC are the joint bookrunning managers.

U.S. Bank Trust Co., NA is the trustee.

PNC will be represented by Hogan Lovells US LLP in addition to in-house counsel. Simpson Thacher & Bartlett LLP will be counsel for the underwriters.

Proceeds will be used for general corporate purposes, including refinancing short-term borrowings incurred for general corporate and working capital purposes, or redeeming, repurchasing or repaying outstanding securities. As of March 6, UnitedHealth had about $6.6 billion of short-term borrowings outstanding, with a weighted-average annual interest rate of 4.3%.

Minnetonka, Minn.-based UnitedHealth provides a full range of health benefits.

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