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CVS announces early results of maximum tender offers

CVS Health Corp. on Aug. 22 announced the early results of its maximum tender offers for its $723.3 million of 2020 maximum tender offer notes and $961.6 million of 2021 maximum tender offer notes.

The 2020 maximum tender offer notes consist of $1 billion outstanding principal amount of floating rate notes due 2020 and $2.75 billion of 2.8% senior notes dues 2020. Meanwhile, the 2021 maximum tender offer notes comprise of $3 billion of 3.35% senior notes due 2021, $1 billion of floating rate notes due 2021, and $1.75 billion of 2.125% senior notes due 2021.

As of 5 p.m. ET on Aug. 21, the drug retailer said it will accept a principal amount of $723.3 million out of the $803.7 million that have been tendered from the $1 billion floating rate notes due 2020. It will also accept $961.6 million of the $2.06 billion that have been tendered out of the $3 billion of 3.35% senior notes due 2021.

CVS noted that the aggregate principal amount of the validly tendered notes exceed their respective maximum tender offer amount. As a result, it will only accept on a prorated basis the validly tendered floating rate notes due 2020 and 3.35% senior notes due 2021. Holders of these notes will receive an early tender payment of $30 per $1,000 principal amount of maximum tender offer notes.

The company will no longer accept validly tendered 2.8% senior notes dues 2020, floating rate notes due 2021, and 2.125% senior notes due 2021. Moreover, no additional maximum tender offer notes will be purchased after the early settlement date of Aug. 23. Notes that were tendered but not accepted by the retailer will be returned to holders' accounts.

The maximum tender offers are set to expire Sept. 5, and their settlement date will be Sept. 9.