Simpson Thacher represented Walgreens Boots Alliance, Inc. (“WBA”) in connection with its public offering of $6 billion aggregate principal amount of notes, consisting of $1.25 billion aggregate principal amount of 1.75% notes due 2018, $1.5 billion aggregate principal amount of 2.6% notes due 2021, $750 million aggregate principal amount of 3.1% notes due 2023, $1.9 billion aggregate principal amount of 3.45% notes due 2026 and $600 million aggregate principal amount of 4.65% notes due 2046 (collectively, the “Notes”). WBA intends to use the net proceeds from the Notes offering to fund a portion of the cash consideration payable in connection with its pending acquisition of Rite Aid Corporation (“Rite Aid”), to retire a portion of Rite Aid’s existing debt and to pay related fees and expenses. Any remaining net proceeds from the sale of the notes may also be used for general corporate purposes. The offering closed on June 1, 2016.
WBA is the largest retail pharmacy, health and daily living destination in the USA and Europe. WBA’s portfolio of retail and business brands includes Walgreens, Duane Reade, Boots and Alliance Healthcare, as well as increasingly global health and beauty product brands, such as No7, Botanics, Liz Earle and Soap & Glory.
The Simpson Thacher team for the transaction included Kenneth Wallach, Mark Brod, Matthew Levy, Erica Lee, Patrick Vergara and Derek Stueben (Capital Markets); Brian Steinhardt and Eli Isak (Banking and Credit); Andrew Blau and Patricia Adams (Executive Compensation and Employee Benefits); and Jonathan Cantor, Michael Badain and Jasmine Hay (Tax).