Humana Completes Aggregate $1.0 Billion Debt Offering
Insurance Daily News
2019 AUG 22 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Humana Inc. (NYSE: HUM) announced the completion of its public offering of $1.0 billion in senior notes. These senior notes are comprised of $500 million of the company’s 3.125 percent senior notes, due 2029, at 99.898 percent of the principal amount, and $500 million of the company’s 3.950 percent senior notes, due 2049, at 99.634 percent of the principal amount (collectively, “Senior Notes Offerings”).
The company expects net proceeds from the Senior Notes Offerings of approximately $990 million, after deducting underwriters’ discounts and estimated offering expenses. The company intends to use the net proceeds from this offering, together with available cash, to repay its $400 million aggregate principal amount of 2.625 percent senior notes due October 1, 2019 on the maturity date and repay outstanding amounts due under the company’s term note. As of June 30, 2019, the outstanding balance under the company’s term note was $650 million and the interest rate in effect on that outstanding balance was 3.55 percent.
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