Aetna Inc. has borrowed $500 million from public investors by issuing senior notes that pay an interest rate of 4.125% and will be due in 2021.

Aetna, Hartford (NYSE:AET), will be using a majority of the net proceeds to repay senior notes that have an interest rate of 5.75% in June, when the older notes mature.

While Aetna is waiting for the older notes to mature, it will use the proceeds from the new note offering for general corporate purposes, the company says.

Up until March 1, 2021, Aetna can redeem the notes by paying the greater of 100% of the principal amount of the notes being redeemed, or the sum of the present values of the remaining scheduled payments of principal and interest on the notes being redeemed discounted at the Treasury Rate plus 0.2 percentage points.

- Allison Bell

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