CVS raises $4 billion in four-part bond sale to fund takeover

CVS Caremark Corp., the largest provider of prescription drugs in the U.S., is planning to raise $4 billion in a four-part bond sale to help fund its $2.1 billion takeover of infusion services provider Coram LLC. More

To continue reading this article, please do one of the following.



health care

CVS raises $4 billion in four-part bond sale to fund takeover

BLOOMBERG FILE PHOTO/DAVID PAUL MORRIS
CVS CAREMARK CORP. raised $4 billion in a four-part bond sale to help fund its $2.1 billion takeover of Apria Healthcare Group's Coram LLC, according to a person with knowledge of the offering. Proceeds will be used to pay back commercial paper and for general corporate purposes, including the buyout.
Posted 12/2/13

(Updated, Dec. 3, 2:14 p.m.)

NEW YORK – CVS Caremark Corp., the largest provider of prescription drugs in the U.S., raised $4 billion in a four-part bond sale to help fund its $2.1 billion takeover of infusion-services provider Coram LLC.

CVS issued two $1.25 billion portions of 2.25 percent, five-year notes at a relative yield of 85 basis points more than similar-maturity Treasuries and 4 percent, 10-year securities at a spread of 125 basis points, according to data compiled by Bloomberg. The company also sold $750 million slices of 1.2 percent, three-year debt at 65 basis points and 5.3 percent, 30- year bonds at 145.

Proceeds will be used to pay back commercial paper and for general corporate purposes, including the buyout, according to a person with knowledge of the deal who asked not to be identified, citing lack of authorization to speak publicly.

CVS, which also runs the second-largest U.S. drugstore chain, agreed to buy the provider from Blackstone Group LP’s Apria Healthcare Group Inc. on Nov. 27, the Woonsocket, Rhode Island-based company said in a statement. With the deal, CVS will enter the business of providing therapies such as antibiotics, nutrition and pain medicine to patients intravenously.

The company last tapped the bond market in November 2012, issuing $1.25 billion of 2.75 percent notes due Dec. 1, 2022, according to data compiled by Bloomberg. The securities traded on Nov. 29 at 93 cents on the dollar to yield 3.67 percent, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.

The deal would be the largest for CVS since buying Longs Drug Stores for about $2.8 billion in 2008, beating the largest drugstore chain Walgreen Co. in a bidding contest.

Calendar
PBN Hosted
Events

Join PBN and two panels of successful female executives, business owners and entrepreneurs as we delve into what women should do to advance their careers, and become leaders in the corporate world and their own enterprises.
  • Book of Lists Party
    Save the date - January 15, 2015 for PBN's Book of Lists Party at the Providence ...
  • Best Places to Work
    Enrollment is now open for the 7th annual Best Places to Work program. Winners w ...
Advertisement
Purchase Data
Book of Lists
Lists
Book of Lists cover
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.
Data icons
Data can be purchased as single lists, in either Excel or PDF format; the entire database of the published book, in Excel format; or a printed copy of the Book of Lists.
  • Purchase an e-File of a single list
  •  
  • Purchase an e-File of the entire Book of Lists database
  •  
  • Purchase a printed copy of the Book of Lists
  •  
    National
    Local
    Latest News
    Advertisement