CVS Health Corporation has reported early results for its previously announced cash tender offer (maximum tender offer) for senior notes.
The tender offer involves a series of notes with a total aggregate purchase price, excluding accrued interest, capped at $1,774,423,242.62.
The offer includes various senior notes issued by CVS Health and its wholly owned subsidiary Aetna Inc. These include, among others, CVS Health's 2.700% Senior Notes due 2040, Aetna's 3.875% Senior Notes due 2047, CVS Health's 4.250% Senior Notes due 2050, and Aetna's 4.125% Senior Notes due 2042.
As of Dec. 13, the early tender date, the principal amounts of the notes listed in the tender offer were validly tendered and not withdrawn, according to D.F. King & Co., Inc., the Tender and Information Agent.
With the withdrawal deadline also passing at the same time, CVS Health said that notes tendered in the offer can no longer be withdrawn. The terms and conditions of the tender offer are outlined in the Offer to Purchase dated Dec. 2.
CVS Health has also elected to accept and make payment for the tendered notes on Dec. 18, the early settlement date. Acceptance and payment are subject to the priority levels detailed in the Offer to Purchase.
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As the total tendered amount is expected to reach the Maximum Tender Offer Amount, CVS Health said that it does not anticipate purchasing additional notes after the early settlement date. Any notes tendered but not accepted will be returned promptly to their holders.
The total consideration per $1,000 principal amount of notes includes an early tender payment of $30 for notes tendered before the early tender date. The total consideration is calculated to achieve a yield to maturity or first par call date, based on the yield of applicable US Treasury reference securities plus a fixed spread, as detailed in the offer terms.
In addition to the total consideration, holders of accepted notes will receive accrued and unpaid interest up to, but not including, the early settlement date.
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