Humana Completes Aggregate Offerings of $1B of Senior Notes

Humana (NYSE: HUM) announced today the completion of its public offerings of $600 million of its 3.150 percent Senior Notes, due December 1, 2022, at 99.610 percent of the principal amount (the “2022 Senior Notes”), and $400 million of its 4.625 percent Senior Notes, due December 1, 2042, at 99.937 percent of the principal amount (the “2042 Senior Notes”). Goldman, Sachs & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, Wells Fargo Securities, LLC and U.S. Bancorp Investments, Inc. acted as the joint book-running managers for both the 2022 Senior Notes and the 2042 Senior Notes (collectively, the “Senior Notes Offerings”). The Company expects that a portion of the net proceeds from the Senior Notes Offerings will be used for its previously-announced acquisition of Metropolitan Health Networks, Inc. (“Metropolitan”), to retire Metropolitan's indebtedness (after applying Metropolitan's estimated cash on hand at the closing of the acquisition), and to pay related fees and expenses. The Company expects to use any remaining net proceeds from the offering not applied to the foregoing uses for general corporate purposes. In the event that the Company does not complete its acquisition of Metropolitan on or prior to May 31, 2013 or if, prior to that date, the merger agreement with respect to the acquisition is terminated, the Company will be required to redeem all of the notes of both series at a redemption price equal to 101% of the aggregate principal amount of each series of notes, plus accrued and unpaid interest thereon to, but not including, the date of redemption.