By Aleesia Forni
Virginia Beach, Nov. 6 – Walgreens Boots Alliance Inc., a wholly owned subsidiary of Walgreens Co., priced $8 billion of senior notes (Baa2/BBB/) on Thursday in seven tranches, an informed source said.
Walgreens came to market with $750 million of floaters due 2016 priced with a spread of 45 basis points over Libor.
A $750 million tranche of 1.75% notes due 2017 priced at Treasuries plus 80 bps.
There was also a $1.25 billion tranche of 2.7% five-year notes sold with a spread of Treasuries plus 105 bps.
Walgreens also sold $1.25 billion of 3.3% notes due 2021 priced at 125 bps over Treasuries.
A $2 billion tranche of 3.8% 10-year notes sold at Treasuries plus 145 bps.
The company also priced $500 million of 4.5% notes due 2034 at Treasuries plus 145 bps.
Finally, $1.5 billion of 4.8% notes due 2044 sold with a spread of 170 bps over Treasuries.
Plans for a three-year floating-rate tranche were dropped prior to the deal’s launch.
The seven tranches of notes sold at the tight end of price talk.
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 were 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 is a Deerfield, Ill.-based drugstore chain.
| Issuer: | Walgreens Boots Alliance Inc.
|
| Issue: | Senior notes
|
| Amount: | $8 billion
|
| Bookrunners: | Goldman Sachs & Co., BofA Merrill Lynch, Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC
|
| Trade date: | Nov. 6
|
| Settlement date: | Nov. 18
|
| Ratings: | Moody’s: Baa2
|
| Standard & Poor’s: BBB
|
| Distribution: | SEC-registered
|
|
|
| Notes due 2016
|
| Amount: | $750 million
|
| Maturity: | May 18, 2016
|
| Coupon: | Libor plus 45 bps
|
| Price talk: | Libor plus 45 bps to 50 bps, tightened from Libor plus 50 bps area
|
|
|
| Three-year notes
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| Amount: | $750 million
|
| Maturity: | Nov. 17, 2017
|
| Coupon: | 1.75%
|
| Spread: | Treasuries plus 80 bps
|
| Price talk: | Treasuries plus 80 bps to 85 bps, tightened from Treasuries plus 100 bps area
|
|
|
| Five-year notes
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| Amount: | $1.25 billion
|
| Maturity: | Nov. 18, 2019
|
| Coupon: | 2.7%
|
| Spread: | Treasuries plus 105 bps
|
| Price talk: | Treasuries plus 105 bps to 110 bps, tightened from Treasuries plus 125 bps area
|
|
|
| Seven-year notes
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| Amount: | $1.25 billion
|
| Maturity: | Nov. 18, 2021
|
| Coupon: | 3.3%
|
| Spread: | Treasuries plus 125 bps area
|
| Price talk: | Treasuries plus 125 bps to 130 bps, tightened from Treasuries plus 145 bps area
|
|
|
| 10-year notes
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| Amount: | $2 billion
|
| Maturity: | Nov. 18, 2024
|
| Coupon: | 3.8%
|
| Spread: | Treasuries plus 145 bps
|
| Price talk: | Treasuries plus 145 bps to 150 bps, tightened from Treasuries plus 160 bps area
|
|
|
| 20-year bonds
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| Amount: | $500 million
|
| Maturity: | Nov. 18, 2034
|
| Coupon: | 4.5%
|
| Spread: | Treasuries plus 145 bps
|
| Price talk: | Treasuries plus 145 bps to 150 bps, tightened from Treasuries plus 170 bps area
|
|
|
| 30-year bonds
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| Amount: | $1.5 billion
|
| Maturity: | Nov. 18, 2044
|
| Coupon: | 4.8%
|
| Spread: | Treasuries plus 170 bps
|
| Price talk: | Treasuries plus 170 bps to 175 bps, tightened from Treasuries plus 187.5 bps area
|
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