Humana Establishes Inaugural $1.5B Contingent Capital Facilities Using P-Caps

Fried Frank advised Humana Inc. in offerings of (a) $750 million of pre-capitalized trust securities (P-Caps) redeemable February 15, 2036, by Horseshoe Funding Trust I and (b) $750 million of P-Caps redeemable November 15, 2055, by Horseshoe Funding Trust II. Each Trust will invest the proceeds of the P-Caps sale into a portfolio of US Treasury strips and enter into a facility agreement with Humana. Under the facility agreements, Humana may issue (a) up to $750 million of its 6.062% senior notes due February 15, 2036, to Trust I, and (b) up to $750 million of its 6.887% senior notes due November 15, 2055, to Trust II, in each case, in exchange for an equal amount of Treasuries held by the particular trust. The P-Caps were offered under Rule 144A and have the same rating as Humana's senior debt by S&P and Moody's.

Headquartered in Louisville, KY, Humana is committed to putting health first through its Humana insurance services and CenterWell health care services.

Corporate partners Joshua Wechsler and Lee T. Barnum led the Fried Frank team.

This communication is for general information only. It is not intended, nor should it be relied upon, as legal advice. In some jurisdictions, this may be considered attorney advertising. Please refer to the firm's data policy page for further information.