Elevance Health, Inc. Closes Notes Offering, Raises Approximately $5.14 Billion

Elevance Health, Inc. (NYSE: ELV) recently announced the completion of its sale of various series of Notes, totaling $5.14 billion. The offering comprised $350 million aggregate principal amount of 4.500% Notes due 2026, $750 million aggregate principal amount of 4.750% Notes due 2030, $750 million aggregate principal amount of 4.950% Notes due 2031, $1.2 billion aggregate principal amount of 5.200% Notes due 2035, $1.35 billion aggregate principal amount of 5.700% Notes due 2055, and $800 million aggregate principal amount of 5.850% Notes due 2064.

Under an Underwriting Agreement dated October 22, 2024, with Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, and Wells Fargo Securities, LLC, as underwriters, the offering was successfully closed on October 31, 2024. The company intends to utilize the net proceeds for general corporate purposes, working capital needs, potential acquisitions, repayment of debts, and share repurchases through its share repurchase program.

Interest payments on the various Notes will be made according to different schedules, with the 2026 Notes maturing on October 30, 2026, and the 2064 Notes maturing on November 1, 2064. The Notes have been issued under an Indenture dated as of November 21, 2017, with The Bank of New York Mellon Trust Company, N.A., as the Trustee.

In case of an event of default, the Notes may be declared due immediately. A change of control of the Company coupled with a downgrade below an investment grade rating may trigger a mandatory offer to purchase all of the affected Notes.

While some terms of the notes may permit redemption prior to maturity, specific conditions will apply. The offering details are described fully in the Underwriting Agreement and the Indenture. The company’s intention to fulfill its financial obligations through debt structuring and fund allocation post-offering were also highlighted in the report.

Several full-service financial firms acted as Underwriters, engaging in customary commercial dealings with Elevance Health. The offering is a significant step for Elevance Health as it positions itself for future growth and corporate activities. This press release is not complete and should be reviewed alongside the referenced agreements for a thorough understanding of the terms and conditions.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Elevance Health’s 8K filing here.

Elevance Health Company Profile

Elevance Health, Inc, together with its subsidiaries, operates as a health benefits company in the United States. The company operates through four segments: Health Benefits, CarelonRx, Carelon Services, and Corporate & Other. It offers a variety of health plans and services to program members; health products; an array of fee-based administrative managed care services; and specialty and other insurance products and services, such as stop loss, dental, vision, life, disability, and supplemental health insurance benefits.