UnitedHealth Group, the managed-care insurer with operations in Hartford, said today it will buy back more of its debt due to strong demand.
UnitedHealth launched earlier this month a “Dutch auction” repurchase of up to $200 million in outstanding short-term notes and as much as $550 million in intermediate debt. In a Dutch auction, the asking price of the debt or assets offered is lowered until there are enough bids to sell it all.
However, the company received tenders for more than twice the short-term notes — $472 million – and offers to sell $570 million of intermediate debt.
UnitedHealth says it now plans to buy back up to $575 million of intermediate debt and extended the offer’s original expiration by two days, to midnight on Feb. 5.
UnitedHealth is using available cash and proceeds from the issuance of commercial paper to retire a portion of its debt to reset its balance sheet and cut interest costs.
Bank of America Merrill Lynch, Citigroup, J.P. Morgan Chase and Royal Bank of Scotland are dealer managers for the offer. Global Bondholder Services Corp. is the information agent and depositary for the tender offers.
