Humana Inc. (NYSE:HUM) signed a definitive agreement to acquire the remaining 60% stake in Kindred At Home from TPG Capital, L.P. and Welsh, Carson, Anderson & Stowe for $5.7 billion on April 27, 2021. Humana expects to fund the approximately $5.7 billion transaction (net of Humana’s existing equity stake) through a combination of parent company cash and debt financing. Humana Inc. will use the net proceeds from Senior Notes due 2027 offering, together with cash on hand and borrowings under $500 million Delayed Draw Term Loan. AM Best has assigned Long-Term Issue Credit Ratings (Long-Term IR) of “bbb-” (Good) to Humana Inc.’s (Humana) (headquartered in Louisville, KY) recently announced $750 million 1.350% senior unsecured notes due 2027, the $750 million 2.150% senior unsecured notes due 2032 and the $1.5 billion 0.65% senior unsecured notes due 2023. The outlook assigned to these Credit Ratings (ratings) is stable. Humana’s Long-Term Issuer Credit Rating of “bbb-” (Good), its existing Long-Term IRs and the ratings of its insurance subsidiaries are unchanged. Net proceeds from the debt issuance along with $300 million cash at the company and borrowings of $500 million from the term loan will be used to finance the transaction. As part of the transaction, Kindred At Home home health operations will be integrated into Humana’s Home Solutions business led by Susan Diamond, Segment President. Post completion, Kindred At Home will be rebranded as CenterWell Home Health. The transaction is subject to customary state and federal regulatory approvals and is expected to close in the third quarter of 2021. As per amended filing, the transaction is expected to close in mid-august 2021. The company does not anticipate a material impact to earnings in 2021 from this pending transaction. Humana expects the transaction to provide modest additional financial flexibility for 2022. Goldman Sachs & Co. LLC is acting as financial advisor to Humana. Brian T. Mangino, Andrea Gede-Lange, Stewart A. Kagan, Joshua Wechsler, Jason R. Ertel and Alan S. Kaden of Fried, Frank, Harris, Shriver & Jacobson LLP and Robert Belfort and Randi Seigel of Manatt, Phelps & Phillips LLP are acting as legal advisors to Humana. Barclays PLC (LSE:BARC) and Guggenheim Securities, LLC are acting as financial advisors to Kindred At Home. Andrew Bab, Lawrence Cagney, Gary Friedman, Ted Hassi and Henry Lebowitz of Debevoise & Plimpton LLP and Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. are acting as legal advisors to Kindred At Home. Andrew L. Bab, Lawrence K. Cagney and Gary M. Friedman of Debevoise & Plimpton LLP acted as legal advisors to TPG Capital, L.P. and Welsh, Carson, Anderson & Stowe.