CVS Health Corp. on March 6 launched an offering of certain securities of varying maturity dates for an aggregate purchase price of $40 billion, which the retail pharmacy chain will use to partially fund its purchase of Aetna Inc.
The offering includes $1,000,000,000 floating rate notes due 2020; $1,000,000,000 floating rate notes due 2021; $2,000,000,000 of 3.125% senior notes due 2020; $3,000,000,000 of 3.350% senior notes due 2021; $6,000,000,000 of 3.700% senior notes due 2023; $5,000,000,000 of 4.100% senior notes due 2025; $9,000,000,000 of 4.300% senior notes due 2028; $5,000,000,000 of 4.780% senior notes due 2038; and $8,000,000,000 of 5.050% senior notes due 2048.
The settlement date for the notes, which have an assumed weighted average annual interest rate of 4.27%, is on March 9.
Barclays Capital Inc., Goldman Sachs & Co. LLC, Merrill Lynch, Pierce, Fenner & Smith Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the joint book-running managers in the offering.
Moody's assigned a Baa1 rating to CVS' notes offering the same day it was launched, cautioning that it could be downgraded in the future.
