CVS Health Corp., parent of Hartford-based Aetna Inc., said Friday it has agreed to issue and sell $4 billion in notes.
According to a filing with the U.S. Securities and Exchange Commission, CVS entered into an underwriting agreement on Aug. 11 with Barclays Capital Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC “as representatives of the several underwriters.”
Under the agreement, CVS Health agreed to issue and sell to the underwriters:
- $750 million aggregate principal amount of its 5% senior notes due 2032;
- $1.5 billion aggregate principal amount of its 5.45% senior notes due 2035;
- $1.25 billion aggregate principal amount of its 6.2% senior notes due 2055; and
- $500 million aggregate principal amount of its 6.25% senior notes due 2065.
The Woonsocket, Rhode Island-based healthcare company said the net proceeds from the sale, after deducting underwriters’ discounts and the estimated offering expenses, are expected to be about $3.96 billion.
‘We intend to use the net proceeds from this offering to repay existing indebtedness, including borrowings under our commercial paper program, as well as for other general corporate purposes, which may include working capital, satisfying statutory capital requirements for our regulated entities and capital expenditures,” CVS Health said in the filing.
