(Bloomberg) -- Elevance Health Inc. is selling $5.2 billion of investment-grade bonds as the big US insurer’s shares have slumped following a disappointing earnings forecast.
The company is selling notes in six parts on Tuesday, according to a person with knowledge of the matter, asking not to be identified discussing private details. The longest portion of the offering, an $800 million 40-year bond, may yield 1.38 percentage point above comparable Treasuries, versus initial price talk around 1.75 percentage point.
The sale proceeds may be used for funding acquisitions, refinancing debt, and buying back stock, among other possible purposes, the person said. Last week, Elevance reached a deal to buy Tennessee home-health firm Carebridge.
Citigroup Inc. and Wells Fargo & Co., two of the bond sale’s underwriters, declined to comment. Morgan Stanley, also an underwriter, and Elevance didn’t respond to a request for comment.
Elevance shares have fallen more than 15% since Wednesday’s close. On Thursday before the stock market opened, the company projected flat adjusted per-share earnings for this year and a slower increase for 2025 than previously anticipated amid Medicaid-related costs.
Elevance is one of two firms in the US investment-grade market with bond deals on Tuesday.
(Updates with deal size information in second paragraph. An earlier version of this story corrected the spread in the second paragraph and the comparable date in the fifth paragraph.)
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