New Issue: CVS Health prices $6 billion of senior notes in four tranches

By Wendy Van Sickle

Columbus, Ohio, Feb. 13 – CVS Health Corp. priced a $6 billion of fixed-rate senior notes (Baa2/BBB) in four tranches on Monday, according to an FWP filing with the Securities and Exchange Commission.

A $1.5 billion tranche of 5% three-year notes priced at 99.66 to yield 5.124%, or Treasuries plus 90 basis points.

The company sold $1.5 billion of 5.125% seven-year notes at 99.333 to yield 5.24%. The notes priced with a 140 bps spread over Treasuries.

A $1.75 billion tranche of 5.25% 10-year notes priced at 99.823 to yield 5.273%. The notes priced with a Treasuries plus 155 bps spread.

Finally, $1.25 billion of 5.625% 30-year notes were sold at 99.856 to yield 5.635%, or 155 bps over Treasuries.

BofA Securities, Inc., Barclays and J.P. Morgan Securities LLC are leading the sale. Citigroup Global Markets Inc. and Wells Fargo Securities LLC are also bookrunners.

Proceeds will be used for general corporate purposes, which may include working capital, capital expenditures, repayment of debt and acquisitions, including to fund a portion of the purchase price of the company’s pending acquisition of Signify Health.

CVS Health also announced on Feb. 7 that it would be acquiring Oak Street Health, Inc. for cash, with the value of the transaction at approximately $10.6 billion.

CVS is a Woonsocket, R.I., operator of retail pharmacies and a pharmacy benefits manager.

Issuer:	CVS Health Corp.
Amount:	$6 billion
Issue:	Senior notes
Bookrunners:	BofA Securities, Inc., Barclays, J.P. Morgan Securities LLC (lead bookrunners), Citigroup Global Markets Inc. and Wells Fargo Securities LLC
Co-managers:	Credit Suisse Securities (USA) LLC, Mizuho Securities USA LLC, RBC Capital Markets, LLC, Truist Securities, Inc., U.S. Bancorp Investments, Inc., Fifth Third Securities, Inc., Morgan Stanley & Co. LLC, PNC Capital Markets LLC, SMBC Nikko Securities America, Inc., BNY Mellon Capital Markets, LLC, Loop Capital Markets LLC, ICBC Standard Bank plc, KeyBanc Capital Markets Inc., TD Securities (USA) LLC, Amerivet Securities, Inc. and R. Seelaus & Co., LLC
Trustee:	Bank of New York Mellon
Counsel to issuer:	Shearman & Sterling LLP and MWH Law Group LLP
Counsel to underwriters:	Simpson Thacher & Bartlett LLP
Trade date:	Feb. 13
Settlement date:	Feb. 21
Ratings:	Moody’s: Baa2
	S&P: BBB
Distribution:	SEC registered
Three-year notes
Amount:	$1.5 billion
Maturity:	Feb. 20, 2026
Coupon:	5%
Price:	99.66
Yield:	5.124%
Spread:	Treasuries plus 90 bps
Call features:	Make-whole call at greater of par or Treasuries plus 15 bps before Jan. 20, 2026; thereafter at par
Change-of-control put:	101
Cusip:	126650DS6
Seven-year notes
Amount:	$1.5 billion
Maturity:	Feb. 21, 2030
Coupon:	5.125%
Price:	99.333
Yield:	5.24%
Spread:	Treasuries plus 140 bps
Call features:	Make-whole call at greater of par or Treasuries plus 25 bps before Dec. 21, 2029; thereafter at par
Change-of-control put:	101
Cusip:	126650DT4
10-year notes
Amount:	$1.75 billion
Maturity:	Feb. 21, 2033
Coupon:	5.25%
Price:	99.823
Yield:	5.273%
Spread:	Treasuries plus 155 bps
Call features:	Make-whole call at greater of par or Treasuries plus 25 bps before Nov. 21, 2032; thereafter at par
Change-of-control put:	101
Cusip:	126650DU1
30-year notes
Amount:	$1.25 billion
Maturity:	Feb. 21, 2053
Coupon:	5.625%
Price:	99.856
Yield:	5.635%
Spread:	Treasuries plus 185 bps
Call features:	Make-whole call at greater of par or Treasuries plus 30 bps before Aug. 21, 2052; thereafter at par
Change-of-control put:	101
Cusip:	126650DV9

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