Cigna Corp. subsidiary Halfmoon Parent Inc. has priced an offering of $20 billion of senior notes.
The offering consists of $1 billion of senior floating rate notes due 2020 with an interest rate equal to the three-month London interbank offered rate plus 0.35% per annum; $1.75 billion of 3.200% senior notes due 2020; $1 billion of senior floating rate notes due 2021 with an interest rate equal to the three-month LIBOR plus 0.65% per annum; $1.25 billion of 3.400% senior notes due 2021; $700 million of senior floating rate notes due 2023 with an interest rate equal to the three-month LIBOR plus 0.89% per annum; $3.10 billion of 3.750% senior notes due 2023; $2.20 billion of 4.125% senior notes due 2025; $3.80 billion of 4.375% senior notes due 2028; $2.20 billion of 4.800% senior notes due 2038; and $3 billion of 4.900% senior notes due 2048.
The notes, except for 4.900% senior notes due 2048, are subject to a special mandatory redemption if the pending acquisition of Express Scripts Holding Co. does not occur before Sept. 4, 2019, or if Halfmoon Parent notifies Cigna that it will not pursue the consummation of the acquisition.
Halfmoon Parent intends to use the proceeds from the offering, together with cash on hand and proceeds of borrowings under certain credit facilities and/or issuances of commercial paper, to partly pay the cash portion of the consideration for Express Scripts' acquisition and repay certain debts of Express Scripts and its subsidiaries. The remaining proceeds, if any, may be used for general corporate purposes.
The offering is expected to close Sept. 17.