CVS Health begins cash tender offer for 4.3% notes due 2028

Chicago, Aug. 9 – CVS Health Corp. started a cash tender offer for up to $2 billion principal amount of its 4.3% senior notes due 2028 (Cusip: 126650CX6), according to a press release.

There are $7,049,919,000 of the notes outstanding.

The notes will be repurchased at a priced based on the 1.625% U.S. Treasury due May 15, 2031 plus a 35 basis points fixed spread.

Noteholders who tender by the early deadline of 5 p.m. ET on Aug. 20 will also be eligible to receive an early tender payment of $30 per $1,000 note.

Interest will also be paid to the applicable settlement date.

The early deadline is also the withdrawal deadline.

The expiration time for the offer is 11:59 p.m. ET on Sept. 3.

Pricing will take place at 9 a.m. ET on Aug. 23. At pricing, if the total consideration determined is less than $1,000 per $1,000 principal amount of the notes, then the total consideration will be calculated to the stated maturity date and not to the first par call date for the notes.

Settlement for early tenders is expected for Aug. 24.

Final settlement is planned for Sept. 8.

Barclays (212 528-7581, 800 438-3242), Goldman Sachs & Co. LLC (212 902-5962, 800 828-3182) and Wells Fargo Securities, LLC (704 410-4759, liabilitymanagement@wellsfargo.com) are the dealer managers.

D.F. King & Co., Inc is the information and tender agent for the offer (800 549-6746, 212 269-5550, cvs@dfking.com).

CVS is a Woonsocket, R.I.-based retail pharmacy operator and pharmacy benefits manager.

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