Summary
Elevance Health, Inc. (then WellPoint, Inc.) announced on August 12, 2014, the closing of a significant debt offering, raising approximately $2.667 billion in net proceeds. This offering included the issuance of four series of notes: 2.250% Notes due 2019, 3.500% Notes due 2024, 4.650% Notes due 2044, and 4.850% Notes due 2054. The primary use of these proceeds is to refinance and repay existing debt, specifically the 5.000% Notes due 2014 and a portion of the 5.25% Notes due 2016. In conjunction with this debt refinancing, the company anticipates an after-tax charge not exceeding $0.20 per share. Despite this charge, WellPoint, Inc. raised its full-year 2014 net income guidance to be greater than $8.61 per share, while maintaining its adjusted net income expectation above $8.60 per share, excluding investment gains or losses beyond the first half of the year. The proceeds not used for debt repayment will be allocated to general corporate purposes, including share repurchases and further debt reduction.
Key Highlights
- 1WellPoint, Inc. (now Elevance Health) closed a notes offering, raising approximately $2.667 billion in net proceeds.
- 2The offering consisted of four tranches of notes with varying maturities and coupon rates: 2.250% due 2019, 3.500% due 2024, 4.650% due 2044, and 4.850% due 2054.
- 3Proceeds will be used to repay existing debt, including the 5.000% Notes due 2014 and a portion of the 5.25% Notes due 2016.
- 4The company expects an after-tax charge of up to $0.20 per share related to the debt refinancing.
- 5Full-year 2014 net income guidance was increased to be greater than $8.61 per share.
- 6Adjusted net income guidance for full-year 2014 remains above $8.60 per share, excluding certain investment gains/losses.
- 7Remaining proceeds will be used for general corporate purposes, including share repurchases and debt repayment.