Summary
AmerisourceBergen Corporation (now Cencora, Inc.) filed an 8-K on June 23, 2014, to report the completion of the redemption of its 5 7/8% Senior Notes due 2015. The company redeemed all outstanding notes totaling $500,000,000 in principal amount, incurring a make-whole expense for this early redemption. Importantly for investors, the company stated that this make-whole expense will be excluded from its reported adjusted earnings per share (EPS) from continuing operations for fiscal year 2014. This means the redemption event is not expected to impact the company's previously issued earnings guidance, providing a level of certainty regarding its financial outlook for the year.
Key Highlights
- 1AmerisourceBergen Corporation completed the redemption of all its outstanding 5 7/8% Senior Notes due 2015.
- 2The total principal amount of the redeemed notes was $500,000,000.
- 3The redemption occurred on June 23, 2014, and involved a make-whole premium payment.
- 4The aggregate redemption price, including principal and accrued interest, was $531,525,000.
- 5The company confirmed that the make-whole expense associated with this redemption will be excluded from reported adjusted EPS for fiscal year 2014.
- 6This exclusion means the redemption is not expected to affect the company's previously provided earnings per share expectations for FY2014.
Frequently Asked Questions
AmerisourceBergen announced the completion of the redemption of all of its outstanding 5 7/8% Senior Notes due 2015.
The aggregate principal amount of the notes redeemed was $500,000,000.
The company stated that the make-whole expense resulting from the redemption will be excluded from its reported adjusted earnings per share from continuing operations for fiscal year 2014. Therefore, it is not expected to impact previously reported earnings expectations.
The total redemption price, including the principal amount and accrued interest, was $531,525,000. This figure also includes a make-whole premium for the early redemption.