By Andrea Heisinger
New York, Sept. 10 - Walgreen Co. was in the market with a $4 billion offering of notes (Baa1/BBB/) in five tranches, a market source said.
A $550 million tranche of floating-rate notes due March 2013 priced at par to yield Libor plus 50 basis points. The floaters are non-callable.
A $750 million tranche of 1% notes due March 2015 sold at 99.877 to yield 1.05% with a spread of Treasuries plus 80 bps. The tranche has a make-whole call at Treasuries plus 12 bps.
A $1 billion tranche of 1.8% five-year notes was priced at 99.79 to yield 1.844% with a spread of 120 bps over Treasuries. There is a make-whole call at 20 bps over Treasuries.
The largest tranche was $1.2 billion of 3.1% 10-year notes sold at 99.889 to yield 3.113% with a spread of Treasuries plus 145 bps. The notes have a make-whole call at 22 bps over Treasuries.
Finally, there was $500 million of 4.4% 30-year bonds priced at 99.192 to yield 4.449% with a spread of Treasuries plus 165 bps. The bonds are callable at a make-whole amount of 25 bps over Treasuries.
There is a change-of-control put on the notes at 101%.
Active bookrunners were Bank of America Merrill Lynch and Goldman Sachs & Co. Passive bookrunners are J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC.
Proceeds will be used to repay borrowings under a bridge term loan and for general corporate purposes, including the acquisition of USA Drug.
The drugstore chain is based in Deerfield, Ill.
| Issuer: | Walgreen Co.
|
| Issue: | Notes
|
| Amount: | $4 billion
|
| Bookrunners: | Bank of America Merrill Lynch, Goldman Sachs & Co. (active), J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC (passive)
|
| Change-of-control put: | 101%
|
| Trade date: | Sept. 10
|
| Settlement date: | Sept. 13
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB
|
|
|
| Two-year floaters
|
| Amount: | $550 million
|
| Maturity: | March 13, 2014
|
| Coupon: | Libor plus 50 bps
|
| Price: | Par
|
| Yield: | Libor plus 50 bps
|
| Call: | Non-callable
|
|
|
| Three-year notes
|
| Amount: | $750 million
|
| Maturity: | March 15, 2015
|
| Coupon: | 1%
|
| Price: | 99.877
|
| Yield: | 1.05%
|
| Spread: | Treasuries plus 80 bps
|
| Call: | Make-whole at Treasuries plus 12 bps
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | Sept. 15, 2017
|
| Coupon: | 1.8%
|
| Price: | 99.79
|
| Yield: | 1.844%
|
| Spread: | Treasuries plus 120 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
|
|
| 10-year notes
|
| Amount: | $1.2 billion
|
| Maturity: | Sept. 15, 2022
|
| Coupon: | 3.1%
|
| Price: | 99.889
|
| Yield: | 3.113%
|
| Spread: | Treasuries plus 145 bps
|
| Call: | Make-whole at Treasuries plus 22 bps
|
|
|
| 30-year bonds
|
| Amount: | $500 million
|
| Maturity: | Sept. 15, 2042
|
| Coupon: | 4.4%
|
| Price: | 99.192
|
| Yield: | 4.449%
|
| Spread: | Treasuries plus 165 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
|
|
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