UnitedHealth Group (NYSE:UNH) today announced the final results for its
previously announced modified “Dutch Auction” cash tender offers for
certain of its notes. The tender offers expired at 12:00 midnight, New
York City time, on February 5, 2010. As of the expiration date,
UnitedHealth Group received tenders for $474 million aggregate principal
amount of its short-term notes and $586 million aggregate principal
amount of its intermediate-term notes, each listed in the table below.
Based on the tender caps and the proration terms of the tender offers,
UnitedHealth Group accepted $200 million and $575 million aggregate
principal amount of the short-term notes and the intermediate-term
notes, respectively, resulting in aggregate consideration of
$833 million (plus an additional $14 million in aggregate accrued
interest).
“We are pleased with the results of our debt
tender offers. The tender offers are part of UnitedHealth Group’s
ongoing asset-liability management program and enhance our financial
strength and flexibility as we move forward.”
G. Mike Mikan, executive vice president and chief financial officer of
UnitedHealth Group, said, “We are pleased with the results of our debt
tender offers. The tender offers are part of UnitedHealth Group’s
ongoing asset-liability management program and enhance our financial
strength and flexibility as we move forward.”
Based on the terms of the tender offers, UnitedHealth Group determined
the clearing spreads, reference yields, tender yields, total
consideration and accrued interest per $1,000 principal amount of the
notes as follows:
Holders who validly tendered and did not withdraw their notes on or
prior to 5:00 p.m., New York City time, on January 22, 2010 (the “early
participation date”), and whose notes were purchased pursuant to the
tender offers, will receive the total consideration for such notes.
Holders who validly tendered their notes after the early participation
date, but prior to the expiration date, and whose notes were purchased
pursuant to the tender offers, will receive the total consideration for
such notes, less an early participation amount of $30.00 per $1,000
principal amount of notes. In addition, UnitedHealth Group will pay
accrued interest on the notes purchased pursuant to the tender offers.
Payment for notes tendered and accepted for purchase will be made today,
and all other notes tendered but not accepted for purchase will be
returned to holders. Notes tendered at the respective clearing spreads
for each series have been pro rated based on a pro ration factor of
0.2439 for the short-term notes and 0.9408 for the intermediate-term
notes.
SOURCE UnitedHealth Group
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