Aetna 2012 Annual Report Download - page 25

Annual Report- Page 19
Dividends
In February 2011, we announced that our Board increased our cash dividend to shareholders to $.15 per share and
moved us to a quarterly dividend payment cycle. In December 2011, our Board increased our quarterly cash
dividend to shareholders to $.175 per share. In November 2012, our Board increased our quarterly cash dividend to
shareholders to $.20 per share. On February 19, 2013, our Board declared a cash dividend of $.20 per common
share that will be paid on April 26, 2013, to shareholders of record at the close of business on April 11, 2013. Prior
to February 2011, our policy had been to pay an annual dividend of $.04 per share. During 2012 and 2011 our
Board declared the following cash dividends:
Dividend Amount Stockholders of Date Paid/ Total Dividends
Date Declared Per Share Record Date To be Paid (Millions)
February 3, 2011 $ .15 April 14, 2011 April 29, 2011 $ 57.0
May 20, 2011 .15 July 14, 2011 July 29, 2011 55.9
September 23, 2011 .15 October 13, 2011 October 28, 2011 54.3
December 2, 2011 .175 January 13, 2012 January 27, 2012 61.2
February 24, 2012 .175 April 12, 2012 April 27, 2012 60.8
May 18, 2012 .175 July 12, 2012 July 27, 2012 58.5
September 28, 2012 .175 October 11, 2012 October 26, 2012 58.6
November 30, 2012 .20 January 10, 2013 January 25, 2013 65.5
Declaration and payment of future dividends is at the discretion of our Board and may be adjusted as business needs
or market conditions change. Prior to completion of the proposed Coventry acquisition, we are not permitted to
declare, set aside or pay any dividend or other distribution other than a regular cash dividend in the ordinary course
of business consistent with past practice. Our dividend policy following the completion of the proposed acquisition
will be determined by our Board.
Revolving Credit Facility
On March 27, 2012, we entered into an unsecured $1.5 billion five-year revolving credit agreement (the “Existing
Credit Agreement”) with several financial institutions. The Existing Credit Agreement replaced our prior $1.5
billion five-year revolving credit agreement which was due to expire on March 27, 2013.
On September 24, 2012, and in connection with the proposed acquisition of Coventry, we entered into a First
Amendment (the “First Amendment”) to the Existing Credit Agreement and also entered into an Incremental
Commitment Agreement (the “Incremental Commitment”, and together with the First Amendment and the Existing
Credit Agreement, resulting in the “Facility”). The Facility is an unsecured $2.0 billion revolving credit agreement.
Upon our agreement with one or more financial institutions, we may expand the aggregate commitments under the
Facility to a maximum of $2.5 billion. The Facility also provides for the issuance of up to $200 million of letters of
credit at our request, which count as usage of the available commitments under the Facility. The Facility expires on
March 27, 2017.
Various interest rate options are available under the Facility. Any revolving borrowings mature on the termination
date of the Facility. We pay facility fees on the Facility ranging from .070% to .150% per annum, depending upon
our long-term senior unsecured debt rating. The facility fee was .100% at December 31, 2012. The Facility
contains a financial covenant that requires us to maintain a ratio of total debt to consolidated capitalization as of the
end of each fiscal quarter at or below 0.5 to 1.0. For this purpose, consolidated capitalization equals the sum of
total shareholders’ equity, excluding any overfunded or underfunded status of our pension and OPEB plans and any
net unrealized capital gains and losses, and total debt (as defined in the Facility). We met this requirement at
December 31, 2012. There were no amounts outstanding under the Facility, the Existing Credit Agreement, or the
replaced five-year revolving credit agreement at any time during the year ended December 31, 2012.