BLOOMFIELD, Conn. - The Cigna Group (NYSE: NYSE:CI) disclosed the pricing terms for its cash tender offers to purchase various series of its senior notes on Tuesday. The offers involve the company's 3.50% Senior Notes due 2024 and Evernorth Health, Inc.'s 3.50% Senior Notes due 2024, alongside a selection of notes with maturities ranging from 2025 to 2030.
The tender offers are structured in two parts: the Any and All Tender Offer for the 3.50% notes due 2024 and the Maximum Tender Offer, which is capped at $1.55 billion for the remaining notes. The company has determined the total consideration for each $1,000 principal amount of notes based on a fixed spread over a reference U.S. Treasury Security, including an early tender payment of $30.
For the Any and All Tender Offer, the total consideration for the 3.50% Senior Notes due 2024 from both The Cigna Group and Evernorth has been set at $993.39, with a reference yield of 5.406%. The Maximum Tender Offer notes, prioritized by their respective acceptance levels, have total considerations ranging from $866.32 to $989.92, with fixed spreads and reference yields varying based on maturity and priority.
Payments for notes tendered and accepted as of the early tender date, February 16, 2024, are expected to be made on February 22, 2024. The tender offers will expire on March 5, 2024, with the company indicating that due to full subscription as of the early tender date, it does not expect to accept any further notes of the Maximum Tender Offer after that date.
The dealer managers for the tender offers are J.P. Morgan Securities LLC, Deutsche Bank (ETR:DBKGn) Securities Inc., Goldman Sachs & Co (NYSE:GS). LLC, and Wells Fargo (NYSE:WFC) Securities, LLC. D.F. King & Co., Inc. serves as the tender agent and information agent for the offers.
This announcement is based on a press release statement.
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