By Cristal Cody
Tupelo, Miss., April 13 – Walgreens Boots Alliance, Inc. priced a $1.5 billion two-part offering of senior notes (Baa2/BBB/BBB-) on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.
A $500 million tranche of 3.2% 10-year notes was sold at 99.992 to yield 3.201%, or a spread of Treasuries plus 245 basis points, versus talk in the 287.5 bps area.
Walgreens priced $1 billion of 4.1% 30-year notes at par to yield a Treasuries plus 270 bps spread.
Initial price talk was in the 300 bps over Treasuries area.
J.P. Morgan Securities LLC, Mizuho Securities USA Inc., SMBC Nikko Securities America Inc., Wells Fargo Securities LLC and HSBC Securities (USA) Inc. were the bookrunners.
Proceeds will be used for general corporate purposes.
Walgreens is a Deerfield, Ill.-based drugstore chain.
| Issuer: | Walgreens Boots Alliance, Inc.
|
| Amount: | $1.5 billion
|
| Description: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Mizuho Securities USA Inc., SMBC Nikko Securities America Inc., Wells Fargo Securities LLC and HSBC Securities (USA) Inc.
|
| Senor co-managers: | UBS Securities LLC, NatWest Markets Securities Inc. and U.S. Bancorp Investments, Inc.
|
| Co-managers: | SunTrust Robinson Humphrey, Inc. and Loop Capital Markets LLC
|
| Trade date: | April 13
|
| Settlement date: | April 15
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | April 15, 2030
|
| Coupon: | 3.2%
|
| Price: | 99.992
|
| Yield: | 3.201%
|
| Spread: | Treasuries plus 245 bps
|
| Call features: | Make-whole call before Jan. 15, 2030 at Treasuries plus 40 bps; thereafter at par
|
| Price guidance: | Treasuries plus 287.5 bps area
|
|
|
| 30-year notes
|
| Amount: | $1 billion
|
| Maturity: | April 15, 2050
|
| Coupon: | 4.1%
|
| Price: | Par
|
| Yield: | 4.1%
|
| Spread: | Treasuries plus 270 bps
|
| Call features: | Make-whole call before Oct. 15, 2049 at Treasuries plus 40 bps; thereafter at par
|
| Price guidance: | Treasuries plus 300 bps area
|
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