Summary
Cencora, Inc. (formerly AmerisourceBergen Corporation) filed an 8-K on May 12, 2020, to disclose the pricing of $500 million aggregate principal amount of 2.800% Senior Notes due May 15, 2030. The company entered into an Underwriting Agreement with several representatives to issue and sell these senior unsecured notes. The sale is expected to be consummated on May 19, 2020, subject to closing conditions. The net proceeds from this offering, estimated at approximately $493.8 million after deducting underwriting discounts and expenses, are intended to be used to redeem all of the company's 3.500% Senior Notes due November 15, 2021, and for general corporate purposes. Pending their application, the proceeds will be invested in high-quality, short-term debt securities. The filing also includes a cautionary note regarding forward-looking statements and details related to the underwriting syndicate's prior and potential future involvement in the company's financial activities.
Key Highlights
- 1Pricing of $500 million in 2.800% Senior Notes due May 15, 2030, was announced.
- 2The company expects to receive net proceeds of approximately $493.8 million.
- 3Proceeds will be used to redeem $3.500% Senior Notes due November 15, 2021, and for general corporate purposes.
- 4The sale of the notes is expected to close on May 19, 2020.
- 5The notes are senior unsecured obligations of the company.
- 6The issuance is registered under the company's existing shelf registration statement.
- 7The filing provides extensive detail on the relationships between the company and the underwriters/their affiliates.