NEW YORK - The Cigna Group (NYSE: NYSE:CI), a global health service company, has initiated tender offers to repurchase up to $2.25B of its outstanding notes, the company revealed today. This financial maneuver includes an offer to purchase any and all of its 3.50% Senior Notes due 2024 and Evernorth Health, Inc.'s 3.50% Senior Notes due 2024, as well as a separate offer targeting up to $1.25B aggregate principal amount of various other notes with maturity dates ranging from 2025 to 2030.
The tender offers, which are subject to certain conditions outlined in the Offer to Purchase dated today, are structured to prioritize the acceptance of notes based on a predefined Acceptance Priority Level. The company has set sub-caps for the total amount of notes it will purchase within certain maturity brackets, with the possibility of adjusting these caps at their discretion.
Holders who tender their securities by the early deadline of 5:00 P.M. New York City Time on February 16, 2024, and whose notes are accepted for purchase, will receive an early tender payment in addition to the calculated total consideration. This total consideration reflects a yield to maturity or par call date, as applicable, which includes a fixed spread over the corresponding U.S. Treasury Reference Yield.
The tender offers will expire on March 5, 2024, unless extended, with the possibility of an early settlement date anticipated to be on or around February 22, 2024. The final settlement date, if an early settlement does not occur, is expected to be on or around March 8, 2024. All holders of accepted notes will also receive accrued and unpaid interest from the last interest payment date up to, but not including, the settlement date.
The completion of the tender offers is contingent upon the condition that the company receives sufficient proceeds from a proposed securities issuance to cover the repurchase costs, including premiums, accrued interest, and related expenses.
This strategic move by The Cigna Group, as stated in the press release, is part of their broader financial strategy. The company, known for its health services under various brands including Evernorth Health Services and Cigna Healthcare, maintains a significant global presence, with sales capabilities in over 30 countries and jurisdictions and approximately 165 million customer relationships worldwide.
The information for this news article is based on a press release statement by The Cigna Group.
InvestingPro Insights
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InvestingPro data highlights that Cigna's Market Cap stands at a robust $94.76B, with a Price/Earnings (P/E) Ratio of 18.19, reflecting investor sentiment and market valuation of the company's earnings. The revenue for the last twelve months as of Q3 2023 has grown by 5.46%, indicating a steady increase in the company's financial intake. Moreover, Cigna's dividend yield as of the latest data is 1.73%, coupled with a notable dividend growth of 25.0% over the last twelve months, showcasing the company's commitment to returning value to shareholders.
InvestingPro Tips suggest that management's aggressive share buybacks and consistent dividend raises for 3 consecutive years demonstrate a strong confidence in the company's financial health and future prospects. Additionally, the company has been a prominent player in the Healthcare Providers & Services industry, which may be a reassuring factor for investors considering the company's sector stability and growth potential.
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