What was the total amount raised from the new notes offering?

Elevance Health (then Anthem, Inc.) raised approximately $5,457.8 million in net proceeds from the sale of its new notes after deducting underwriting discounts and offering expenses.

How does Elevance Health intend to use the proceeds from this offering?

The proceeds are intended to fund two acquisitions (HealthSun Health Plans, Inc. and America’s 1st Choice of South Carolina, Inc.), to fund the repurchase of existing debt through tender offers, and to redeem any remaining untendered debt. Any remaining proceeds may be used for working capital, general corporate purposes, debt repayment, or share repurchases.

What are the key terms of the new debt issued?

The company issued five series of notes: $900 million of 2.500% Notes due 2020, $750 million of 2.950% Notes due 2022, $850 million of 3.350% Notes due 2024, $1,600 million of 3.650% Notes due 2027, and $1,400 million of 4.375% Notes due 2047. Interest is generally paid semi-annually.

What happened with the company's "Any and All" debt tender offer?

The company announced the expiration and results of its 'Any and All Offer' for its 7.000% Notes due 2019. Approximately $185.1 million in principal amount of these notes were validly tendered and accepted for purchase on November 21, 2017.

ELV 8-K SEC Disclosure — Nov 21, 2017

Summary

Elevance Health, Inc. (then operating as Anthem, Inc.) filed an 8-K on November 20, 2017, to report the closing of a significant debt offering. The company successfully issued approximately $5.46 billion in aggregate principal amount of new notes across five different maturities, ranging from 2020 to 2047, with coupon rates varying from 2.500% to 4.375%. The net proceeds from this offering are earmarked for crucial strategic initiatives, including funding two previously announced acquisitions: HealthSun Health Plans, Inc. and America’s 1st Choice of South Carolina, Inc. Additionally, a substantial portion of the proceeds will be used to repurchase existing debt through tender offers for its 7.000% Notes due 2019 and various other notes maturing between 2034 and 2044. Any remaining funds may be allocated to working capital, general corporate purposes, debt repayment, and share repurchases. This offering represents a strategic move by Elevance Health to strengthen its financial position and execute its growth strategy through acquisitions and debt management. The issuance of new, lower-interest-bearing debt allows the company to refinance existing obligations and fund significant expansion efforts. Investors should note the clear allocation of proceeds towards strategic acquisitions and debt optimization, indicating proactive financial management aimed at enhancing long-term value and operational capabilities.

Key Highlights

1Successfully closed a debt offering totaling approximately $5.46 billion across five new note series due 2020, 2022, 2024, 2027, and 2047.
2The new notes carry interest rates ranging from 2.500% to 4.375%.
3Net proceeds will be utilized to fund the acquisitions of HealthSun Health Plans, Inc. and America’s 1st Choice of South Carolina, Inc.
4A significant portion of the proceeds is allocated to repurchasing existing debt through tender offers, including the 7.000% Notes due 2019.
5The offering enhances the company's financial flexibility for general corporate purposes, including working capital and share repurchases.
6The new notes are governed by an Indenture with The Bank of New York Mellon Trust Company, N.A., as trustee.
7The company is obligated to make a tender offer for the new notes at 101% of principal if a change of control occurs coupled with a credit rating downgrade.

Elevance Health, Inc. 8-K Report, Corporate Update (Nov 21, 2017)

Summary

Key Highlights

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