Humana Prices $1.35 Billion Debt Offering
02 Novembro 2023 - 10:21PM
Business Wire
Humana Inc. (the “company”) (NYSE: HUM) announced today that it
has priced a public offering of $1.35 billion in aggregate
principal amount of senior notes. These senior notes are comprised
of $500 million of the company’s 5.750 percent senior notes, due
2028, at 99.830 percent of the principal amount, and $850 million
of the company’s 5.950 percent senior notes, due 2034, at 98.525
percent of the principal amount (collectively, the “Senior Notes
Offerings”). The Senior Notes Offerings are expected to close on
November 9, 2023, subject to the satisfaction of customary closing
conditions.
The company expects net proceeds from the Senior Notes Offerings
will be approximately $1.324 billion after deducting underwriters’
discounts and estimated offering expenses. The company intends to
use the net proceeds from the Senior Notes Offerings for general
corporate purposes, which may include the repayment of existing
indebtedness, including borrowings under its commercial paper
program.
Barclays Capital Inc., BofA Securities, Inc., Goldman Sachs
& Co. LLC, J.P. Morgan Securities LLC and Truist Securities,
Inc. are acting as active joint book-running managers for the
Senior Notes Offerings.
The Senior Notes Offerings are being made pursuant to an
effective shelf registration statement (including a base
prospectus) filed with the Securities and Exchange Commission (the
“SEC”). The Senior Notes Offerings may be made only by means of a
prospectus and related prospectus supplement, copies of which may
be obtained by calling Barclays Capital Inc. toll-free at (888)
603-5847, BofA Securities, Inc. toll-free at (800) 294-1322,
Goldman Sachs & Co. LLC toll-free at (866) 471-2526, J.P.
Morgan Securities LLC collect at (212) 834-4533 or Truist
Securities, Inc. toll-free at (800) 685-4786. An electronic copy of
the registration statement and prospectus supplement, together with
the base prospectus, is available on the SEC’s website at
www.sec.gov.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy the securities described herein,
nor shall there be any sale of these securities in any state or
jurisdiction in which such an offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such jurisdiction.
Cautionary Statement
This news release includes forward-looking statements regarding
Humana within the meaning of the Private Securities Litigation
Reform Act of 1995. When used in investor presentations, press
releases, SEC filings, and in oral statements made by or with the
approval of one of Humana’s executive officers, the words or
phrases like “expects,” “believes,” “anticipates,” “intends,”
“likely will result,” “estimates,” “projects” or variations of such
words and similar expressions are intended to identify such
forward-looking statements.
These forward-looking statements are not guarantees of future
performance and are subject to risks, uncertainties, and
assumptions, including, among other things, information set forth
in the “Risk Factors” section of the company’s SEC filings, a
summary of which includes but is not limited to the following:
- If Humana does not design and price its products properly and
competitively, if the premiums Humana receives are insufficient to
cover the cost of healthcare services delivered to its members, if
the company is unable to implement clinical initiatives to provide
a better healthcare experience for its members, lower costs and
appropriately document the risk profile of its members, or if its
estimates of benefits expense are inadequate, Humana’s
profitability could be materially adversely affected. Humana
estimates the costs of its benefit expense payments, and designs
and prices its products accordingly, using actuarial methods and
assumptions based upon, among other relevant factors, claim payment
patterns, medical cost inflation, and historical developments such
as claim inventory levels and claim receipt patterns. The company
continually reviews estimates of future payments relating to
benefit expenses for services incurred in the current and prior
periods and makes necessary adjustments to its reserves, including
premium deficiency reserves, where appropriate. These estimates
involve extensive judgment, and have considerable inherent
variability because they are extremely sensitive to changes in
claim payment patterns and medical cost trends. Accordingly,
Humana’s reserves may be insufficient.
- If Humana fails to effectively implement its operational and
strategic initiatives, including its Medicare initiatives, which
are of particular importance given the concentration of the
company's revenues in these products, state-based contract
strategy, the growth of its CenterWell business, and its integrated
care delivery model, the company’s business may be materially
adversely affected. In addition, there can be no assurances that
the company will be successful in maintaining or improving its Star
ratings in future years.
- If Humana fails to properly maintain the integrity of its data,
to strategically maintain existing or implement new information
systems, to protect Humana’s proprietary rights to its systems, or
to defend against cyber-security attacks or prevent other privacy
or data security incidents that result in security breaches that
disrupt the company’s operations or in the unintentional
dissemination of sensitive personal information or proprietary or
confidential information, the company’s business may be materially
adversely affected.
- Humana is involved in various legal actions, or disputes that
could lead to legal actions (such as, among other things, provider
contract disputes and qui tam litigation brought by individuals on
behalf of the government), governmental and internal
investigations, and routine internal review of business processes
any of which, if resolved unfavorably to the company, could result
in substantial monetary damages or changes in its business
practices. Increased litigation and negative publicity could also
increase the company’s cost of doing business.
- As a government contractor, Humana is exposed to risks that may
materially adversely affect its business or its willingness or
ability to participate in government healthcare programs including,
among other things, loss of material government contracts;
governmental audits and investigations; potential inadequacy of
government determined payment rates; potential restrictions on
profitability, including by comparison of profitability of the
company’s Medicare Advantage business to non-Medicare Advantage
business; or other changes in the governmental programs in which
Humana participates. Changes to the risk-adjustment model utilized
by CMS to adjust premiums paid to Medicare Advantage plans or
retrospective recovery by CMS of previously paid premiums as a
result of the final rule related to the risk adjustment data
validation audit methodology published by CMS on January 30, 2023
(Final RADV Rule), which Humana believes fails to address
adequately the statutory requirement of actuarial equivalence and
violates the Administrative Procedure Act due to its failure to
include a “Fee For Service Adjuster (FFS Adjuster)”, could have a
material adverse effect on the company’s operating results,
financial position and cash flows.
- Humana’s business activities are subject to substantial
government regulation. New laws or regulations, or legislative,
judicial, or regulatory changes in existing laws or regulations or
their manner of application could increase the company's cost of
doing business and have a material adverse effect on Humana’s
results of operations (including restricting revenue, enrollment
and premium growth in certain products and market segments,
restricting the company’s ability to expand into new markets,
increasing the company’s medical and operating costs by, among
other things, requiring a minimum benefit ratio on insured
products, lowering the company’s Medicare payment rates and
increasing the company’s expenses associated with a non-deductible
health insurance industry fee and other assessments); the company’s
financial position (including the company’s ability to maintain the
value of its goodwill); and the company’s cash flows.
- Humana’s failure to manage acquisitions, divestitures and other
significant transactions successfully may have a material adverse
effect on the company’s results of operations, financial position,
and cash flows.
- If Humana fails to develop and maintain satisfactory
relationships with the providers of care to its members, the
company’s business may be adversely affected.
- Humana faces significant competition in attracting and
retaining talented employees. Further, managing succession for, and
retention of, key executives is critical to the company’s success,
and its failure to do so could adversely affect the company’s
businesses, operating results and/or future performance.
- Humana’s pharmacy business is highly competitive and subjects
it to regulations and supply chain risks in addition to those the
company faces with its core health benefits businesses.
- Changes in the prescription drug industry pricing benchmarks
may adversely affect Humana’s financial performance.
- Humana’s ability to obtain funds from certain of its licensed
subsidiaries is restricted by state insurance regulations.
- Downgrades in Humana’s debt ratings, should they occur, may
adversely affect its business, results of operations, and financial
condition.
- The securities and credit markets may experience volatility and
disruption, which may adversely affect Humana’s business.
- The spread of, and response to, the novel coronavirus, or
COVID-19, underscores certain risks Humana faces, including those
discussed above, and the ongoing, heightened uncertainty created by
the pandemic precludes any prediction as to the ultimate adverse
impact to Humana of COVID-19.
In making forward-looking statements, Humana is not undertaking
to address or update them in future filings or communications
regarding its business or results. In light of these risks,
uncertainties, and assumptions, the forward-looking events
discussed herein may or may not occur. There also may be other
risks that the company is unable to predict at this time. Any of
these risks and uncertainties may cause actual results to differ
materially from the results discussed in the forward-looking
statements.
Humana advises investors to read the following documents as
filed by the company with the SEC for further discussion both of
the risks it faces and its historical performance:
- Form 10-K for the year ended December 31, 2022;
- Form 10-Qs for the quarters ended March 31, 2023, June 30, 2023
and September 30, 2023; and
- Form 8-Ks filed during 2023.
About Humana
Humana Inc. (NYSE: HUM) is committed to putting health first –
for our teammates, our customers, and our company. Through our
Humana insurance services, and our CenterWell health care services,
we make it easier for the millions of people we serve to achieve
their best health – delivering the care and service they need, when
they need it. These efforts are leading to a better quality of life
for people with Medicare, Medicaid, families, individuals, military
service personnel, and communities at large.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231102199315/en/
Lisa Stoner Investor Relations Humana Inc. 502-580-2652 e-mail:
lstamper@humana.com
Mark Taylor Corporate Communications Humana Inc. 317-753-0345
e-mail: mtaylor108@humana.com
Humana (NYSE:HUM)
Gráfico Histórico do Ativo
De Abr 2024 até Mai 2024
Humana (NYSE:HUM)
Gráfico Histórico do Ativo
De Mai 2023 até Mai 2024