Walgreens talks eight-part senior notes offering for Thursday pricing

By Aleesia Forni

Virginia Beach, Nov. 6 – Walgreens Boots Alliance Inc. is pricing an eight-tranche offering of senior notes (Baa2/BBB/) on Thursday, according to a market source and 424B5 filed with the Securities and Exchange Commission.

The sale includes floating-rate notes due 2016 talked in the Libor plus 50 basis points area.

There is also a tranche of fixed-rate notes due 2017 talked in the Treasuries plus 100 bps area and a floating-rate tranche due 2017 talked at the Libor equivalent.

A five-year tranche of notes is talked in the 125 bps area over Treasuries; a seven-year tranche is talked at the 145 bps area over Treasuries; and a 10-year tranche is talked at the 160 bps area over Treasuries.

A 20-year tranche of notes is talked in the Treasuries plus 170 bps area, and a 30-year tranche is talked in the Treasuries plus 187.5 bps area.

Proceeds will be used to acquire the remaining 55% of the issued and outstanding share capital of Alliance Boots GmbH, to refinance of Alliance Boots’ existing borrowings and to pay related fees and expenses. Proceeds may also be used for general corporate purposes, including the repayment of the company’s 1% notes due 2015.

The bookrunner are Goldman Sachs & Co., BofA Merrill Lynch, Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC.

Walgreens Boots is a wholly owned subsidiary of Walgreens, a Deerfield, Ill.-based drugstore chain.

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