Walgreens debuts approximately $2 billion in bonds in Europe to help fund Alliance Boots transaction

DEERFIELD, Ill. — Pursuant to its $8 billion bond offering in the U.S. on Friday, Walgreens Boots Alliance — a wholly owned subsidiary of Walgreens — will be debuting $1.1 billion in six- and 11-year notes and $932 million in 12-year notes on the European exchange. 

 

Like the $8 billion bond offering, Walgreens Boots Alliance will use the proceeds to fund a portion of the cash consideration of approximately $5 billion in cash and to refinance substantially all of Alliance Boots' existing borrowings. 

 

Specifically, Walgreens Boots Alliance will offer 400 million British pounds of 2.875% notes due 2020; 300 million British pounds of 3.6% notes due 2025; ajnd 750 million Euros of 2.125% notes due 2026.

 

The sale of the notes is expected to close on Nov. 20, 2014, subject to customary closing conditions. The joint book-running managers for the offering are: Goldman, Sachs, Deutsche Bank, London Branch, Merrill Lynch International, HSBC Bank, J.P. Morgan Securities, Morgan Stanley & Co. International and Wells Fargo Securities.

 

Subject to shareholder approval, it is expected that immediately prior to the completion of the second step of the Alliance Boots transaction, Walgreens will be reorganized into a holding company structure and will become a wholly-owned subsidiary of Walgreens Boots Alliance.

 

Following the completion of the second step of the Alliance Boots transaction, a portion of the net proceeds from the sale of the notes may also be used to satisfy existing debt, including the repayment of $750 million principal amount of Walgreens 1% Notes due March 13, 2015.