Humana Inc. has announced the pricing of a $1.25 billion public offering of senior notes, comprised of $750 million of 5.550 percent senior notes due 2035 and $500 million of 6.000 percent senior notes due 2055. The offering is expected to close on March 5, 2025, and the company anticipates net proceeds of approximately $1.231 billion after deducting underwriters' discounts and estimated offering expenses.
The net proceeds from the offering will be used to repay the company's 4.500% senior notes due 2025 at maturity in April 2025, with the remainder intended for general corporate purposes, including the repayment of existing indebtedness.
Barclays Capital Inc., BofA Securities, Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, and U.S. Bancorp Investments, Inc. are acting as active joint book-running managers for the senior notes offerings.
The senior notes offerings are being made pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission. Interested parties may obtain copies of the prospectus and related prospectus supplement by contacting the respective book-running managers or accessing the documents on the SEC's website.
The offering represents a strategic move by Humana Inc. to address its financial obligations and leverage opportunities for future investments and operations. Today the company's shares have moved -0.6% to a price of $260.64. For the full picture, make sure to review Humana's 8-K report.
