Health & Fitness
Health and Fitness
Health and Fitness
Thu, December 9, 2010
Wed, December 8, 2010
Tue, December 7, 2010
CIGNA Announces Pricing of Tender Offer for Any and All of Its 8.50% Senior Notes Due 2019
PHILADELPHIA--([ BUSINESS WIRE ])--CIGNA Corporation (NYSE: CI) announced today the determination of the Purchase Price (as defined below) for its previously announced cash tender offer for any and all of its $350 million principal amount of outstanding 8.50% Senior Notes due 2019 (the aNotesa). The tender offer is being made pursuant to an offer to purchase and related letter of transmittal, each dated December 1, 2010, which set forth a more complete description of the terms of the tender offer, including the calculation of the Purchase Price. Holders of the Notes are urged to read the offer to purchase and the related letter of transmittal carefully before making any decisions with respect to the tender offer.
The tender offer will expire at 11:59 P.M., New York City time, on December 7, 2010 (the aExpiration Timea) unless extended or earlier terminated. To be eligible to receive the Purchase Price, holders of the Notes must validly tender and not validly withdraw their Notes prior to the Expiration Time. Tendered Notes may be withdrawn at any time at or before, but not after, the Expiration Time.
CIGNA will pay holders of the Notes that validly tender and do not validly withdraw their Notes prior to the Expiration Time an amount equal to $1,307.54 per $1,000 principal amount of Notes (the aPurchase Pricea). In addition to the Purchase Price, CIGNA will also pay accrued and unpaid interest on Notes purchased up to, but not including the settlement date. CIGNA expects the settlement date to be December 8, 2010, the next business date following the Expiration Time.
The Purchase Price was determined by reference to a fixed spread of 100 basis points over the bid-side yield to maturity of the 2.625% U.S. Treasury Notes due November 15, 2020, calculated by the dealer managers at 2:00 p.m., New York City time today, December 7, 2010. The table below sets forth some of the pricing terms for the Notes.
| Principal | ||||||||||||||
| CUSIP | Amount | U.S. Treasury | Reference | Fixed Spread | Tender | Purchase | ||||||||
| Title of Security | Number | Outstanding | Reference Security | Yield | (Basis Points) | Offer Yield | Price | |||||||
| 8.50% Senior Notes due 2019 | 125509BL2 | $350,000,000 | 2.625% due November 15, 2020 | 3.128% | 100 | 4.128% | $1,307.54 | |||||||
The tender offer is subject to the satisfaction of certain conditions set forth in the offer to purchase.
CIGNA has retained Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC to serve as the dealer managers and D.F. King & Co., Inc. to serve as the depositary and information agent for the tender offer.
Requests for documents may be directed to D.F. King & Co., Inc. toll free at (800) 769-7666 or in writing at 48 Wall Street a" 22nd Floor, New York, New York 10005. Questions regarding the tender offer may be directed to Deutsche Bank Securities Inc. at (866) 627-0391 (toll-free) or (212) 250-2955 (collect) or J.P. Morgan Securities LLC at (866) 834-4666 (toll-free) or (212) 834-3424 (collect).
About CIGNA
CIGNA is a global health service and financial company dedicated to helping people improve their health, well-being and sense of security. CIGNA Corporation's operating subsidiaries in the United States provide an integrated suite of health services, such as medical, dental, behavioral health, pharmacy and vision care benefits, as well as group life, accident and disability insurance.CIGNA offers products and services in over 27 countries and jurisdictions and has approximately 60 million customer relationships throughout the world. To learn more about CIGNA, visit [ www.cigna.com ].
All statements in this press release other than statements of historical facts are aforward-looking statementsa within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results of matters addressed in these forward-looking statements involve risks and uncertainties and may differ substantially from those expressed or implied. Some of the factors that could cause actual results to differ are discussed under the heading aRisk Factorsa in the companya™s most recent Form 10-K filed with the Securities and Exchange Commission and under the heading aForward-Looking Statementsa in the companya™s most recent quarterly report on Form 10-Q filed with the Securities and Exchange Commission.
