#USA #Senior Notes #Tender Offer #CVS Health #Woonsocket

CVS Health Corporation: Pricing of Tender Offer

On December 6, 2024, CVS Health Corporation, known for its significant role in the health solutions sector, announced key details regarding its cash tender offer for its 4.100% Senior Notes due in 2025. This financial maneuver aims to strengthen CVS Health's financial position while giving investors a clearer understanding of the investment landscape.

Overview of the Tender Offer

The company communicated the Reference Yield and Total Consideration associated with this tender offer, also known as the 'Any and All Tender Offer.' The principal amount emerging from this offer totals approximately $950 million, financed by CVS’s existing resources.

Breakdown of the Offer

The following details summarize the components associated with this financial initiative:

• - Title of Notes: 4.100% Senior Notes due 2025
• - CUSIP Number: 126650CW8
• - Principal Amount Outstanding: $950,087,000
• - Maturity Date: March 25, 2025
• - UST Reference Security: 3.875% due March 31, 2025
• - Reference Yield: 4.434%
• - Total Consideration: $998.22 per $1,000 principal amount

These amounts are critical for investors as they outline the financial implications of participating in this tender offer. The details reflect a well-considered strategy by CVS Health in managing its debt portfolio.

Important Dates

For eligible holders seeking to participate, the following dates are crucial:

• - Offer Expiration Date: 5:00 PM (ET) on December 6, 2024
• - Settlement Date: Expected to occur by December 11, 2024
• - Withdrawal Deadline: Holders can retract their offers at any time prior to the listed withdrawal deadline.

It is important to note that any valid submissions made within the stipulated timeframe will receive the total consideration specified. In addition to the principal amounts, holders can also expect accrued interest from the last payment date up to the settlement date.

Strategic Benefits for CVS Health

CVS Health is leveraging this tender offer as a strategic tool to improve its overall capital structure. It highlights the company's proactive stance in managing its obligations efficiently. The successful completion of the tender offer could result in reduced interest expenses and enhanced liquidity, which are proactive measures in today's competitive healthcare sector.

Furthermore, CVS Health has engaged top financial entities, including Barclays Capital Inc. and Mizuho Securities USA LLC, to facilitate this tender offer. Their expertise will ensure that the offer process is smooth and transparent for all involved parties.

Conclusion

This tender offer marks another pivotal moment for CVS Health as it seeks to optimize its financial strategies while ensuring its commitment to shareholders. With a robust consumer base and diversified health services, CVS Health continues to be a leader in the sector. Investors are urged to evaluate this tender offer carefully against their individual investment strategies and reach out to their financial advisors for guidance.

About CVS Health

CVS Health is deeply embedded in the health solutions industry, connecting vital health services across a large network. As of September 30, 2024, the company operates over 9,000 retail locations, medical clinics, and a pharmacy benefits manager serving around 90 million plan members. CVS Health emphasizes delivering quality care while managing costs effectively, reflecting its commitment to customers and stakeholders alike.

Forward-Looking Statements

As a reminder, this announcement contains forward-looking statements with inherent risks and uncertainties. Investors are encouraged to assess these new developments in the context of CVS Health's overall strategy and market conditions.