Summary
CVS Health Corporation (CVS) announced on September 5, 2008, the execution of an Underwriting Agreement to issue and sell $350 million of Floating Rate Notes due September 10, 2010. The net proceeds from this offering are estimated to be approximately $348.5 million after deducting underwriting discounts and estimated expenses. These proceeds are expected to bolster the company's financial flexibility and support its operational and strategic initiatives. This debt issuance occurs in the context of CVS's ongoing activities, including its proposed acquisition of Longs Drug Stores Corporation, where some of the underwriters or their affiliates have acted as financial advisors and are participants in the company's bridge loan facility. The net proceeds will reduce the outstanding commitment under its Form S-3 registration statement, indicating a strategic use of capital.
Key Highlights
- 1CVS Caremark Corporation issued $350 million in Floating Rate Notes due September 10, 2010.
- 2The net proceeds from the note issuance are estimated at approximately $348.5 million.
- 3The offering was conducted under the company's existing Registration Statement on Form S-3.
- 4The debt issuance is governed by a Senior Indenture dated August 15, 2006.
- 5Underwriters and their affiliates have provided past and potentially future investment banking services to CVS.
- 6Certain underwriters are involved as financial advisors and lenders in relation to the proposed acquisition of Longs Drug Stores Corporation.
- 7The net proceeds will reduce the outstanding commitment under the company's Form S-3 registration statement.