This excerpt taken from the UNH 8-K filed Dec 19, 2006.
IN FIXED INCOME SECURITIES
MINNEAPOLIS (March 3, 2006) - UnitedHealth Group Incorporated (NYSE: UNH) announced today that it has priced and issued $3 billion in fixed income securities in the following tranches:
$650,000,000 of 3 Year Floating Rate Notes due March 2, 2009;
$750,000,000 of 5 Year Fixed Rate Notes due March 15, 2011;
$750,000,000 of 10 Year Fixed Rate Notes, due March 15, 2016;
$850,000,000 of 30 Year Fixed Rate Notes, due March 15, 2036.
The pricing on the securities was as follows:
Issuance proceeds will be used to repay commercial paper borrowings that were used primarily to finance the cash portion of the consideration for the PacifiCare acquisition, which UnitedHealth Group completed on December 20, 2005. The notes are rated A, (stable), A2, (stable) and A, (stable) by Standard & Poors, Moodys Investors Service and Fitch Ratings, respectively.
The very strong demand for each tranche of this landmark fixed income offering for UnitedHealth Group reflects the reputation that the Company has with fixed income investors, said Robert LoBue, head of high grade and high yield syndicate from Joint Book Runner JP Morgan Securities. The offerings of the 3-year floating rate note and the 30-year fixed rate note, for which there was very strong demand, have brought new term fixed income investors into UnitedHealth Group
securities, said David Trahan, managing director of investment grade syndicate at Citigroup Global Markets, Inc., also a Joint Book Runner on the transaction.
UnitedHealth Group treasurer Robert Oberrender concluded, We are pleased with investor receptivity to this offering. The tranches issued today further expand our investor base and allow us to continue to improve our overall match of liability durations with the assets of our businesses. By reducing interest rate risk through asset/liability management, we are able to focus our energies on building value in our core business of making the health system work better, through effective health resource organization, large scale health transaction processing, and the application of data and informatics in a health care environment.
About UnitedHealth Group
UnitedHealth Group (www.unitedhealthgroup.com) is a diversified health and well-being company dedicated to making health care work better. Headquartered in Minneapolis, Minn., UnitedHealth Group offers a broad spectrum of products and services through six operating businesses: UnitedHealthcare, Ovations, AmeriChoice, Uniprise, Specialized Care Services and Ingenix. Through its family of businesses, UnitedHealth Group serves approximately 65 million individuals nationwide.
(For Immediate Release)