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March 17, 2017 at 12:43 PM
Humana Inc. borrowed $1 billion from investors Wednesday with a public offering of senior notes.
Related: Humana may lose $180 per 2017 ACA exchange enrollee
The Louisville, Kentucky-based health insurer placed $600 million in 10-year senior notes. Those notes are due March 15, 2027, at 99.877% of the principal amount. The notes pay an interest rate of 3.95%.
The company also placed $400 million in 30-year senior notes. Those notes are due March 15, 2047, at 99.905 percent of the principal amount. They pay an interest rate of 4.8 percent.
Humana expects to end up with $988 million in cash after it pays the companies that underwrote the offering.
The managers of the offering were Bank of America Merrill Lynch, J.P. Morgan, Morgan Stanley and US Bancorp. The managers each took 2027 notes with a principal amount of $114.75 million and 2047 notes with a principal amount of $76.5 million.
Humana says it will use the proceeds for general corporate purposes, including investments, acquisitions and working capital.
