Cigna replaces existing revolver with $6.5 billion in new agreements

By Mary-Katherine Stinson

Lexington, Ky., April 26 – Cigna Corp. entered into two separate revolving credit facilities totaling $6.5 billion on April 25, which replace in full the company’s existing revolving agreements, according to an 8-K filing with the Securities and Exchange Commission.

Cigna entered into a $5 billion five-year revolving credit and letter-of-credit agreement and a $1.5 billion 364-day revolving credit agreement.

Each facility includes an option to increase commitments in an aggregate amount of up to $1.5 billion across both facilities for a maximum aggregate capacity of $8 billion.

Advances will bear interest at adjusted one-month SOFR with a 0% floor plus an applicable margin, based on the company’s credit ratings.

The credit agreements contain a financial covenant that Cigna may not permit its leverage ratio to be greater than 0.6x or, if requested by Cigna, 0.65x for the four quarters following an acquisition in which the total cash consideration is equal to or greater than $1 billion.

JPMorgan Chase Bank, NA is the administrative agent for each of the facilities. BofA Securities, Inc., Citibank, NA, Morgan Stanley Senior Funding, Inc., and Wells Fargo Securities, LLC are the joint lead arrangers, joint bookrunners and documentation agents.

The health services company is based in Bloomfield, Conn.

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