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Aetna to partially fund Humana deal with $3.2B bond — 6 points on the $37B proposed merger and Humana stockholder opposition

Aetna reported the payer plans to take out a $3.2 billion bond to help fund its proposed $37 billion Humana acquisition, according to Healthcare Finance.

Here are six points:

1. The payer filed documents to the Securities and Exchange Commission on June 2 detailing its proposed plan for the bond.

2. In the documents, Aetna said the bond will add $58.5 million additional interest expenses in 2015 and $14.4 million during the first quarter of 2016. The bond also assumes a three-year loan, holding an annual interest rate of 2.017 percent.

3. In terms of acquisition-related transaction costs, Aetna will pay an estimated $528.8 million and Humana will pay an estimated $118.7 million.

4. Despite many Aetna and Humana stockholder and shareholders approving the merger, some Humana stockholders filed three class action complaints opposing the merger. The stockholders filed two suits in the Circuit Court of Jefferson County (Ky.) and one in the Court of Chancery of the State of Delaware.

5. In the Delaware compliant, the stockholders name each of Humana's board of director members as defendants, with the complaints claiming the board of director members each put their own financial interest above the stockholders and did not take the necessary steps to maximize Humana's value to stockholders. The complaints also allege the merger undervalues Humana.

6. In their suit, the complainants are seeking the merger's termination in addition to costs and attorney fees.

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