Anthem cuts dilution with mandatory bond

摘要

Anthem, the second-largest healthcare provider in the US, acted to protect shareholders from hefty dilution by repurchasing a deep-in-the-money convertible bond with the proceeds from another convert. The insurer is a beneficiary of the Affordable Care Act (colloquially known as Obamacare), and has the high-class problem of a stock that is up 50% in the past year. That brings a weighty burden in the form of the US$1.5bn 30-year, 2.75% CB issued to help fund the US$4.85bn purchase of Wellpoint in 2012.