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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 14, 1996
Aetna Inc.
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(Exact name of registrant as specified in its charter)
Connecticut 1-11913 02-0488491
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
151 Farmington Avenue
Hartford, CT 06156
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 860-273-0123
Not Applicable
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(Former name or former address, if changed since last report)
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Item 5. Other Information.
The Pricing Agreement dated August 14, 1996 relating to
certain debt securities, as named therein, is filed herewith as
Exhibit 99.1.
Item 7. Financial Statements, Pro Forma Financial Information and
Exhibits
A. Financial Statements
NONE
B. Pro Forma Financial Information
NONE
C. Exhibits
99.1 Pricing Agreement.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
Aetna Inc.
/s/ Robert J. Price
Date: August 15, 1996 By:________________________________
Name: Robert J. Price
Title: Vice President and
Corporate Controller
(Chief Accounting Officer)
EXHIBIT INDEX
Exhibit
Number
99.1 Pricing Agreement
EXHIBIT 99.1
PRICING AGREEMENT
Merrill Lynch, Pierce, Fenner & Smith
Incorporated
CS First Boston Corporation
Donaldson Lufkin & Jenrette Securities
Corporation
Goldman, Sachs & Co.
Lehman Brothers Inc.
J.P. Morgan Securities Inc.
Morgan Stanley & Co. Incorporated
c/o Merrill Lynch, Pierce, Fenner & Smith
Incorporated
250 Vesey Street
World Financial Center
North Tower
New York, New York 10231
August 14, 1996
Ladies and Gentlemen:
Aetna Services, Inc. a Connecticut corporation (the
"Company"), proposes, subject to the terms and conditions stated herein and in
the Underwriting Agreement, dated August 14, 1996 (the "Underwriting
Agreement"), to issue and sell to the Underwriters named in Schedule I hereto
(the "Underwriters") the Securities specified in Schedule II hereto (the
"Designated Securities"). The Securities specified in Schedule II hereto
shall be guaranteed by Aetna Inc., a Connecticut corporation (the
"Guarantor"), as set forth in the Indenture identified in Schedule II hereto.
Each of the provisions of the Underwriting Agreement is incorporated herein by
reference in its entirety, and shall be deemed to be a part of this Agreement
to the same extent as if such provisions had been set forth in full herein;
and each of the representations and warranties set forth therein shall be
deemed to have been made at and as of the date of this Pricing Agreement,
except that each representation and warranty that refers to the Prospectus in
Section 2 of the Underwriting Agreement shall be deemed to be a representation
or warranty as of the date of the Underwriting Agreement in relation to the
Prospectus (as therein defined), and also a representation and warranty as of
the date of this Pricing Agreement in relation to the Prospectus as amended or
supplemented relating to the Designated Securities which are the subject of
this Pricing Agreement. Unless otherwise defined herein, terms defined in the
Underwriting Agreement are used herein as therein defined. The address of the
Underwriters is set forth at the end of Schedule II hereto.
A supplement to the Prospectus relating to the Designated
Securities, in the form heretofore delivered to you, is now proposed to be
filed with the Commission.
Subject to the terms and conditions set forth herein and in
the Underwriting Agreement incorporated herein by reference, the Company
agrees to issue and to sell to each of the Underwriters, and each of the
Underwriters agrees, severally and not jointly, to purchase from the Company,
at the time and place and at the purchase price to the Underwriters set forth
in Schedule II hereto, the principal amount of Designated Securities set forth
opposite the name of such Underwriter in Schedule I hereto and the Guarantor
agrees to issue its Guarantees with respect to such Designated Securities.
If the foregoing is in accordance with your understanding,
please sign and return to us counterparts hereof, and upon acceptance hereof
by you, on behalf of each of the Underwriters, this letter and such acceptance
hereof, including the provisions of the Underwriting Agreement incorporated
herein by reference, shall constitute a binding agreement between each of the
Underwriters and the Company and the Guarantor. It is understood that your
acceptance of this letter on behalf of each of the Underwriters is or will be
pursuant to the authority set forth in a form of Agreement among Underwriters,
the form of which shall be submitted to the Company and the Guarantor for
examination upon request.
AETNA SERVICES, INC.
/s/ Alfred P. Quirk, Jr.
By: __________________________
Name: Alfred P. Quirk, Jr.
Title: Vice President,
Corporate Finance
AETNA INC.
/s/ Alfred P. Quirk, Jr.
By: __________________________
Name: Alfred P. Quirk, Jr.
Title: Vice President,
Corporate Finance
Accepted as of the date hereof:
Merrill Lynch, Pierce, Fenner & Smith
Incorporated
CS First Boston Corporation
Donaldson Lufkin & Jenrette
Securities Corporation
Goldman, Sachs & Co.
Lehman Brothers Inc.
J.P. Morgan Securities Inc.
Morgan Stanley & Co. Incorporated
By: Merrill Lynch, Pierce, Fenner & Smith
Incorporated
/s/ William A. Ullman
By: ____________________________
Name: William A. Ullman
Title: Director
SCHEDULE I
Principal Amount of Designated
Securities to be Purchased
<TABLE>
<CAPTION>
Underwriters 6.750% Guaranteed Notes due 7.125% Guaranteed Notes due
- --------------------------------------------------- --------------------------- ---------------------------
August 15, 2001 August 15, 2006
--------------------------- ---------------------------
<S> <C> <C>
Merrill Lynch, Pierce, Fenner & Smith Incorporated... $ 42,858,000 $ 50,000,000
CS First Boston Corporation.......................... 42,857,000 50,000,000
Donaldson Lufkin & Jenrette Securities Corporation... 42,857,000 50,000,000
Goldman, Sachs & Co.................................. 42,857,000 50,000,000
Lehman Brothers Inc.................................. 42,857,000 50,000,000
J.P. Morgan Securities Inc........................... 42,857,000 50,000,000
Morgan Stanley & Co. Incorporated.................... 42,857,000 50,000,000
Total $ 300,000,000 $ 350,000,000
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7.625% Guaranteed Debentures due 6.970% Guaranteed Debentures due
-------------------------------- --------------------------------
August 15, 2026 August 15, 2036
-------------------------------- --------------------------------
<S> <C> <C>
Merrill Lynch, Pierce, Fenner & Smith Incorporate... $ 64,290,000 $ 42,858,000
CS First Boston Corporation.......................... 64,285,000 42,857,000
Donaldson Lufkin & Jenrette Securities Corporation... 64,285,000 42,857,000
Goldman, Sachs & Co.................................. 64.285,000 42,857,000
Lehman Brothers Inc.................................. 64,285,000 42,857,000
J.P. Morgan Securities Inc........................... 64,285,000 42,857,000
Morgan Stanley & Co. Incorporated.................... 64,285,000 42,857,000
$ 450,000,000 $ 300,000,000
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</TABLE>
SCHEDULE II
Title of Designated Securities:
6.750% Guaranteed Notes due August 15, 2001 ("2001 Notes")
7.125% Guaranteed Notes due August 15, 2006 ("2006 Notes")
7.625% Guaranteed Debentures due August 15, 2026 ("2026
Debentures")
6.970% Guaranteed Debentures due August 15, 2036 ("2036
Debentures")
Aggregate Principal Amount:
2001 Notes: $300,000,000
2006 Notes: $350,000,000
2026 Debentures: $450,000,000
2036 Debentures: $300,000,000
Price to Public:
2001 Notes: 99.851% of the principal amount of 2001 Notes,
plus accrued interest, if any, from August 19,
1996
2006 Notes: 99.263% of the principal amount of 2006 Notes,
plus accrued interest, if any, from August 19,
1996
2026 Debentures: 99.071% of the principal amount of 2026
Debentures, plus accrued interest, if any, from
August 19, 1996
2036 Debentures: 100.000% of the principal amount of 2036
Debentures, plus accrued interest, if any, from
August 19, 1996
Purchase Price by Underwriters:
2001 Notes: 99.251% of the principal amount of 2001 Notes,
plus accrued interest, if any, from August 19,
1996
2006 Notes: 98.613% of the principal amount of 2006 Notes,
plus accrued interest, if any, from August 19,
1996
2026 Debentures: 98.196% of the principal amount of 2026
Debentures, plus accrued interest, if any, from
August 19, 1996
2036 Debentures: 99.3625% of the principal amount of 2036
Debentures, plus accrued interest, if any, from
August 19, 1996
Specified Funds for Payment of Purchase Price:
Immediately Available Funds
Indenture:
Indenture dated July 1, 1996, among the Company, the
Guarantor and State Street Bank and Trust Company of Connecticut, National
Association, as Trustee
Maturity:
2001 Notes: August 15, 2001
2006 Notes: August 15, 2006
2026 Debentures: August 15, 2026
2036 Debentures: August 15, 2036
Interest Rate:
2001 Notes: 6.750%
2006 Notes: 7.125%
2026 Debentures: 7.625%
2036 Debentures: 6.970%
Interest Payment Dates:
In each case, interest is payable semi-annually on February
15 and August 15, commencing February 15, 1997.
Redemption Provisions:
No provisions for redemption
Sinking Fund Provisions:
No sinking fund provisions
Optional Repayment Provisions:
2001 Notes: No provisions for optional repayment
2006 Notes: No provisions for optional repayment
2026 Debentures: No provisions for optional repayment
2036 Debentures: The 2036 Debentures may be repaid on August 15,
2004, at the option of the registered holders of
the 2036 Debentures, at 100% of their principal
amount, together with accrued and unpaid
interest to August 15, 2004.
Floating Rate Provisions:
No floating rate provision
Time of Delivery:
August 19, 1996
Closing Location:
Davis Polk and Wardwell
450 Lexington Avenue
New York, NY 10017
Delayed Delivery:
None
Names and Addresses of Underwriters:
Merrill Lynch, Pierce, Fenner & Smith Incorporated
CS First Boston Corporation
Donaldson Lufkin & Jenrette Securities Corporation
Goldman, Sachs & Co.
Lehman Brothers Inc.
J.P. Morgan Securities Inc.
Morgan Stanley & Co. Incorporated
Address for Notices, etc.:
c/o Merrill Lynch, Pierce, Fenner & Smith
Incorporated
250 Vesey Street
World Financial Center
North Tower
New York, New York 10281-1323
