By Andrea Heisinger
Omaha, July 14 - Walgreen Co. priced $1.3 billion 4.875% five-year unsecured notes on Monday to yield Treasuries plus 175 basis points, an informed source said.
The notes (A1/A+/) priced at 99.609 to yield 4.963% with a make-whole redemption option of Treasuries plus 30 bps.
The offering priced at the tight end of price talk of 175 bps to 180 bps.
The notes feature a change-of-control put of 101%.
Active bookrunners were Banc of America Securities LLC and J.P. Morgan Securities Inc., with passive bookrunners Goldman Sachs & Co. and Morgan Stanley & Co., Inc.
Proceeds will be used to repay short-term debt incurred under a commercial paper program and for general corporate purposes.
The drugstore chain is based in Deerfield, Ill.
| Issuer: | Walgreen Co.
|
| Issue: | Unsecured notes
|
| Amount: | $1.3 billion
|
| Maturity: | Aug. 1, 2013
|
| Bookrunners: | Banc of America Securities LLC, J.P. Morgan Securities Inc. (active), Goldman Sachs & Co., Morgan Stanley & Co., Inc. (passive)
|
| Coupon: | 4.875%
|
| Price: | 99.609
|
| Yield: | 4.963%
|
| Spread: | Treasuries plus 175 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
| Change-of-control put: | 101%
|
| Trade date: | July 14
|
| Settlement date: | July 17
|
| Ratings: | Moody's: A1
|
| Standard & Poor's: A+
|
| Price talk: | 175 bps to 180 bps
|
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