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Anthem, selling noteholders close offerings

Anthem Inc. has closed a sale of $850 million of its 4.550% notes due March 1, 2048, and selling security holders closed a sale of $1.25 billion of the company's 4.101% notes due March 1, 2028.

The selling securityholders received the 2028 notes and a cash payment from the company in exchange for $1.25 billion aggregate principal of the company's 1.90% remarketable subordinated notes due 2028 in a transaction that settled March 2, prior to the closing of this offering.

The selling securityholders acquired the remarketable notes in connection with the remarketing of the remarketable notes. As a result of the remarketing, the annual interest rate on the remarketable notes was reset to 4.324%. The company has canceled the remarketable notes.

Anthem received proceeds of about $835.2 million from the sale of the 2048 notes after deducting underwriting discounts and its offering expenses. The company did not receive any proceeds from the sale of the 2028 notes.

The company intends to use the net proceeds for working capital and for general corporate purposes, including, but not limited to, repayment of short-term and long-term debt, repurchase of its common stock pursuant to its share repurchase program and to fund acquisitions.