Humana Inc (NYSE:HUM)., renowned for its insurance and CenterWell health care services, has announced the pricing of a public offering of senior notes amounting to $1.35 billion. The offering, which is expected to close by Thursday, comprises of two parts: $500 million of 5.750 percent senior notes due in 2028 and $850 million of 5.950 percent senior notes due in 2034.
The offerings are made under an effective shelf registration statement, available on the SEC's website, and are managed by Barclays (LON:BARC) Capital Inc., BofA Securities, Inc., Goldman Sachs (NYSE:GS) & Co. LLC, J.P. Morgan Securities LLC, and Truist Securities, Inc. Subject to standard closing conditions, the net proceeds from this offering are anticipated to be approximately $1.324 billion after deductions for underwriters' discounts and estimated expenses.
These funds are expected to be utilized for general corporate purposes, including the repayment of existing debt like commercial paper program borrowings. Amid risks and uncertainties, Humana's forward-looking statements have been approved by the company's executive officers and are safeguarded under the Private Securities Litigation Reform Act of 1995.
InvestingPro Insights
Humana Inc., a prominent player in the Healthcare Providers & Services industry, has been noted for its strong financial position and strategic moves. According to InvestingPro, the company holds more cash than debt on its balance sheet and has consistently yielded high returns on invested capital. These are key indicators of financial health and operational efficiency, which can be reassuring for potential investors.
InvestingPro data shows that as of Q3 2023, Humana has a market cap of $59.27 billion and a P/E ratio of 19.92. This suggests that the company's shares are trading at a relatively high price compared to its earnings, indicating the market's positive outlook for the company's growth. In addition, the company's revenue growth for the last twelve months as of Q3 2023 is 11.88%, indicating a robust financial performance.
InvestingPro Tips also highlight that Humana's management has been aggressively buying back shares, which can be an indication of management's confidence in the company's future performance. Furthermore, the company has maintained its dividend payments for 13 consecutive years, which is a testament to its financial stability and commitment to returning capital to shareholders.
InvestingPro offers additional tips and real-time metrics for Humana and other companies, providing valuable insights for investors and market watchers.
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