WOONSOCKET – CVS Caremark Corp. has announced the final results of the cash tender offer that commenced on Nov. 26.
The total principal amount of the notes eligible for the program was $3.45 billion, split among three bond series: 6.6 percent senior notes due in 2019, 6.125 percent senior notes dues in 2016 and 5.75 percent notes due in 2017. At the time of the announcement of the tender offer, CVS Caremark said that it was authorizing a payout of up to $1 billion in accepting offers for all of its 6.6 percent notes (with a principal amount of $1 billion in aggregate), as well as a combination of the 6.125 percent and 5.75 percent notes that would make up the rest of the payout amount. Subsequently, the company increased the amount of its payout to $1.325 billion.
As a result of the program, which expired at 11:59 p.m. on Dec. 21, all of its 6.6 percent senior notes were tendered and accepted for purchase for a total of $605.7 million. In addition, the company accepted for purchase $279.5 million of the 6.125 percent notes and $439.7 million of the 5.75 percent notes, thus reaching the maximum total payout of $1.325 billion. Because of the volume of tender offers, the buyback only accounted for 51.3 percent of the 5.75 percent notes that were tendered, while all of the 6.125 percent notes that were tendered were accepted.
According to a company release, the purpose of the tender offers is to refinance a portion of the company’s outstanding indebtedness.