Loan & DebtMay 19, 2026, 04:32 PM
Humana Secures $1.5B On-Demand Capital via P-Caps & Senior Notes
AI Summary
Humana Inc. secured $1.5 billion in on-demand capital and liquidity through the issuance and sale of Pre-Capitalized Trust Securities (P-Caps) by two separate trusts. Each trust issued $750 million in P-Caps, allowing Humana to issue up to $750 million in 6.062% Senior Notes due 2036 and $750 million in 6.887% Senior Notes due 2055. This financing structure provides flexible access to capital, with facility fees of 1.661% and 1.916% on unexercised portions, and includes provisions for mandatory exercise under certain conditions.
Key Highlights
- Humana secured $1.5 billion in on-demand capital and liquidity.
- Two trusts issued $750,000,000 each in Pre-Capitalized Trust Securities (P-Caps).
- Humana can issue up to $750M of 6.062% Senior Notes due 2036.
- Humana can issue up to $750M of 6.887% Senior Notes due 2055.
- Facility fees are 1.661% for 2036 Trust and 1.916% for 2055 Trust.
- Mandatory exercise of Issuance Rights if net worth falls below $4.0 billion.
- P-Caps are mandatorily redeemable in 2036 and 2055.
Price Impact
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