Summary
Aflac Incorporated (AFL) has filed an 8-K report on June 30, 2011, detailing its pricing of yen-denominated (Samurai) bonds totaling 50 billion yen, equivalent to approximately $625 million. This issuance is comprised of fixed-rate bonds (Sixth and Seventh Series) and a floating-rate bond (First Series), with maturities in 2014 and 2016. The proceeds are intended for debt repayment and general corporate purposes, indicating a strategic move to manage its capital structure and ensure operational flexibility. The company is utilizing a shelf registration statement filed with Japanese regulatory authorities, marking its first issuance from this registration. The bonds are unsecured general obligations, ranking equally with existing unsecured yen-denominated bonds. This offering highlights Aflac's ongoing access to international debt markets and its commitment to diversifying its funding sources. Investors should note that these securities are not registered in the U.S. and will not be offered to U.S. investors unless compliant with U.S. registration requirements or exemptions.
Key Highlights
- 1Aflac priced 50 billion yen ($625 million) in Samurai bonds on June 29, 2011.
- 2The issuance includes fixed-rate bonds (28.7 billion yen and 15.8 billion yen) and a floating-rate bond (5.5 billion yen).
- 3Proceeds are earmarked for debt repayment and general corporate purposes.
- 4The bonds will be issued on July 8, 2011, under the company's Japanese shelf registration.
- 5Fixed-rate bonds mature in 2014 (1.47% interest) and 2016 (1.84% interest).
- 6The floating-rate bond matures in 2014 with interest tied to 3-month LIBOR (1.15% plus LIBOR).
- 7Bonds are unsecured general obligations, ranking equally with other unsecured yen-denominated bonds.