Aetna Completes $2 Billion Bond Offering

-- Company completes long-term financing for proposed Coventry acquisition --

HARTFORD, Conn.--()--Aetna (NYSE: AET) today announced that it has completed the long-term financing for its proposed acquisition of Coventry Health Care, Inc., through a public offering of:

  • $500 million of 1.5 percent Senior Notes due in 2017;
  • $1 billion of 2.75 percent Senior Notes due in 2022; and
  • $500 million of 4.125 percent Senior Notes due in 2042.

Aetna expects to use the net proceeds from this offering, together with cash on hand and approximately $500 million of commercial paper to be issued prior to closing, to finance the cash portion of the purchase price of the proposed acquisition of Coventry.

“We’re pleased that strong investor demand in Aetna’s bond offering enabled us to complete the long-term financing package for our proposed Coventry acquisition,” said Aetna’s Treasurer Alfred P. Quirk, Jr. “The result is a success for both our bondholders and shareholders.”

As a result of today’s completed bond offering, Aetna’s one-year, $2 billion bridge credit agreement entered into on September 24, 2012, in connection with the proposed acquisition will be terminated effective November 13, 2012.

About Aetna

Aetna is one of the nation's leading diversified health care benefits companies, serving approximately 37.3 million people with information and resources to help them make better informed decisions about their health care. Aetna offers a broad range of traditional, voluntary and consumer-directed health insurance products and related services, including medical, pharmacy, dental, behavioral health, group life and disability plans, and medical management capabilities, Medicaid health care management services and health information technology services. Our customers include employer groups, individuals, college students, part-time and hourly workers, health plans, health care providers, governmental units, government-sponsored plans, labor groups and expatriates. For more information, see www.aetna.com.

Contacts

Aetna
Media Contact:
Cynthia Michener, 860-273-8553
michenerc@aetna.com
or
Investor Contact:
Tom Cowhey, 860-273-2402
cowheyt@aetna.com

Release Summary

Aetna (NYSE: AET) today announced that it has completed the long-term financing for its proposed acquisition of Coventry Health Care, Inc., through a public offering.

Contacts

Aetna
Media Contact:
Cynthia Michener, 860-273-8553
michenerc@aetna.com
or
Investor Contact:
Tom Cowhey, 860-273-2402
cowheyt@aetna.com