The Notes Offering
On September 15, 2025, Elevance Health, Inc. (the “Company”) closed its sale of $750 million aggregate principal amount of its 4.000% Notes due 2028 (the “2028 Notes”), $750 million aggregate principal amount of its 4.600% Notes due 2032 (the “2032 Notes”), $1,000 million aggregate principal amount of its 5.000% Notes due 2036 (the “2036 Notes”) and $500 million aggregate principal amount of its 5.700% Notes due 2055 (the “2055 Notes” and, together with the 2028 Notes, the 2032 Notes and the 2036 Notes, the “Notes”) pursuant to an Underwriting Agreement, dated September 8, 2025 (the “Underwriting Agreement”), among the Company and BofA Securities, Inc., Deutsche Bank Securities Inc. and Mizuho Securities USA LLC, as representatives of the several underwriters named on Exhibit A thereto (the “Underwriters”). The Notes have been registered under the Securities Act of 1933, as amended (the “Act”), pursuant to a registration statement on Form S-3 (File No. 333-275251) previously filed with the Securities and Exchange Commission (the “SEC”) under the Act.
The Company received proceeds of approximately $2,972.7 million from the sale of the Notes after deducting underwriting discounts and its offering expenses. The Company intends to use the net proceeds to repay or redeem all of the $400 million aggregate principal amount of its 5.350% senior notes due 2025 and to redeem or otherwise repurchase all of the $500 million aggregate principal amount of its 4.900% senior notes due 2026, in each case at or prior to their respective maturities. The Company intends to use the remainder of net proceeds for working capital and for general corporate purposes, including, but not limited to, the funding of acquisitions, repayment of other short-term and long-term debt, and the repurchase of the Company’s common stock pursuant to its share repurchase program. The Indenture (as defined below) does not prohibit or limit the incurrence of indebtedness and other liabilities by the Company or its subsidiaries.
The Notes have been issued pursuant to an Indenture, dated as of November 21, 2017 (the “Indenture”), between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”). Interest on the 2028 Notes, the 2032 Notes and the 2055 Notes is payable semi-annually in arrears on March 15 and September 15 of each year, commencing March 15, 2026. Interest on the 2036 Notes is payable semi-annually in arrears on January 15 and July 15 of each year, commencing January 15, 2026. Each interest payment on the 2028 Notes, the 2032 Notes and the 2055 Notes will be made to the persons who are registered holders of such Notes at the close of business on the immediately preceding March 1 or September 1 (whether or not a business day), as applicable. Each interest payment on the 2036 Notes will be made to the persons who are registered holders of such Notes at the close of business on the immediately preceding January 1 or July 1 (whether or not a business day), as applicable. Interest, in each case, will be computed on the basis of a 360-day year of twelve 30-day months.
The Notes may be declared immediately due and payable by the Trustee or the holders of 25% of the principal amount of the Notes of the affected series if an event of default occurs under the Indenture and has not been cured. An event of default generally means that the Company (1) fails to pay the principal or any premium on a Note on its due date, (2) does not pay interest on a Note within 30 days of its due date, (3) remains in breach of any other term of the Indenture for 90 days after its receipt of written notice of such failure or (4) files for bankruptcy or certain other events in bankruptcy, insolvency or reorganization occurs.
The 2028 Notes will mature on September 15, 2028, the 2032 Notes will mature on September 15, 2032, the 2036 Notes will mature on January 15, 2036 and the 2055 Notes will mature on September 15, 2055. Prior to (i) with respect to the 2028 Notes, August 15, 2028 (one month prior to the maturity date of such Notes), (ii) with respect to the 2032 Notes, July 15, 2032 (two months prior to the maturity date of such Notes) (iii) with respect to the 2036 Notes, October 15, 2035 (three months prior to the maturity date of such Notes), and (iv) with respect to the 2055 Notes, March 15, 2055 (six months prior to the maturity date of such Notes) (each such date, a “Par Call Date”), the Company may redeem the applicable series of Notes at its option, in whole or in part, at any time and from time to time, at a redemption price (expressed as a percentage of principal amount and rounded to three decimal places) equal to the greater of (1) (a) the sum of the present values of the remaining scheduled payments of principal and interest on the Notes to be redeemed discounted to the redemption date (assuming that such Notes matured on their applicable Par Call Date), on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate, as defined in the Indenture, plus 10 basis points in the case of the 2028 Notes, 15 basis points in the case of the 2032 Notes, 15 basis points in the case of the 2036 Notes and 20 basis points in the case of the 2055 Notes, less (b) interest accrued to the redemption date; and (2) 100% of the principal amount of the Notes to be redeemed; plus, in either case, accrued and unpaid interest on the applicable Notes to the redemption date.
