Walgreens misses buyout deadline, required to call three series at 101

By Susanna Moon

Chicago, June 2 – Walgreens Boots Alliance, Inc. plans to call its $1.25 billion principal amount of 1.75% notes due 2018, $1.5 billion of 2.6% notes due 2021 and $750 million principal amount of 3.1% notes due 2023.

Under the terms of the notes issued June 1, 2016, the company is required to redeem the notes at a redemption price of 101% because the acquisition of Rite Aid Corp. failed to close by June 1, according to an 8-K filing with the Securities and Exchange Commission.

The company said it expects to have enough resources from cash, investment balances and availability under credit facilities and arrangements to close the purchase of Rite Aid and, as a result, does not plan to issue new notes to replace the ones being redeemed.

Wells Fargo Bank, NA is the trustee.

Walgreens is a Deerfield, Ill.-based drugstore chain.

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