Walgreens Announces Pricing Of $8 Bln Notes Offering

(RTTNews) - Walgreen Co. (WAG) (WAG) said Thursday that its subsidiary, Walgreens Boots Alliance, Inc., has priced an underwritten public offering of unsecured, unsubordinated notes consisting of $750 million of floating rate notes due 2016, $750 million of 1.750% notes due 2017, $1.25 billion of 2.700% notes due 2019, $1.25 billion of 3.300% notes due 2021, $2.0 billion of 3.800% notes due 2024, $500 million of 4.500% notes due 2034 and $1.5 billion of 4.800 % notes due 2044.

The sale of the notes is expected to close on November 18.

The company plans to use the net proceeds from the offering to fund a portion of the cash consideration payable in connection with the previously announced acquisition of the 55% equity interest in Alliance Boots GmbH that Walgreens does not currently own, to refinance substantially all of Alliance Boots GmbH's existing borrowings, and/or to pay related fees and expenses.

Following the completion of the second step of the Alliance Boots deal, a portion of the net proceeds from the sale of the notes may also be used for general corporate purposes, including the repayment of $750 million principal amount of Walgreen Co. 1.000% Notes due March 13, 2015.

Subject to shareholder approval, it is expected that, immediately prior to the completion of the second step of the Alliance Boots transaction, Walgreen Co. will be reorganized into a holding company structure and will become a wholly-owned subsidiary of Walgreens Boots Alliance, Inc.