Cencora Prices $500 Million 4.625% Senior Notes Due 2027, $600 Million 4.850% Senior Notes Due 2029 and $700 Million 5.150% Senior Notes Due 2035

Rhea-AI Summary

Cencora (NYSE: COR) has announced pricing for three senior notes offerings totaling $1.8 billion: $500 million of 4.625% notes due 2027, $600 million of 4.850% notes due 2029, and $700 million of 5.150% notes due 2035. The offering, expected to close on December 9, 2024, will fund the acquisition of Retina Consultants of America's majority stake and general corporate purposes. The offering is managed by BofA Securities, Citigroup Global Markets, J.P. Morgan Securities, and Wells Fargo Securities.

Positive

• Successful pricing of $1.8 billion in senior notes indicates strong market confidence
• Strategic acquisition of Retina Consultants of America majority stake expands business portfolio
• Company ranks #10 on Fortune 500 with over $290 billion in annual revenue

Negative

• Increased debt load through $1.8 billion notes offering
• Higher interest expenses from new notes ranging from 4.625% to 5.150%

Insights

Financial Analyst

The $1.8 billion senior notes offering demonstrates Cencora's strategic financial planning and robust market access. The tiered structure with varying maturities (2027, 2029 and 2035) and interest rates (4.625% to 5.150%) shows smart debt management, taking advantage of current market rates while spreading repayment obligations. The primary purpose - financing the Retina Consultants of America acquisition - signals expansion in the specialized healthcare segment, potentially strengthening Cencora's market position in ophthalmology services.

The involvement of major financial institutions (BofA, Citigroup, J.P. Morgan and Wells Fargo) as joint book-running managers adds credibility to the offering. With annual revenue exceeding $290 billion and Fortune 500 rankings (#10 US, #24 Global), Cencora's financial position appears solid for this debt undertaking.

CONSHOHOCKEN, Pa.--(BUSINESS WIRE)-- Cencora, Inc. (NYSE: COR) today announced that it priced $500 million aggregate principal amount of its 4.625% Senior Notes due December 15, 2027 (the “2027 Notes”), $600 million aggregate principal amount of its 4.850% Senior Notes due December 15, 2029 (the “2029 Notes”) and $700 million aggregate principal amount of its 5.150% Senior Notes due February 15, 2035 (the “2035 Notes” and, together with the 2027 Notes and the 2029 Notes, the “Notes”), in an underwritten registered public offering. The offering is being made pursuant to an effective shelf registration statement Cencora filed with the Securities and Exchange Commission (the “SEC”) on November 26, 2024. The offering is expected to close on December 9, 2024, subject to the satisfaction of customary closing conditions. Cencora intends to use the net proceeds from the offering to finance the acquisition of the majority of Retina Consultants of America and related fees and expenses, and for general corporate purposes.

The joint book-running managers for the offering are BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Wells Fargo Securities, LLC. Earlier today, Cencora filed a preliminary prospectus supplement and an accompanying prospectus with the SEC in connection with the offering of the Notes. Copies of these materials can be made available by contacting: BofA Securities, Inc., NC1-004-03-43, 200 North College Street, 3rd Floor, Charlotte, North Carolina 28255, Attention: Prospectus Department, email: dg.prospectus_requests@bofa.com; Citigroup Global Markets Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, email: prospectus@citi.com or telephone: 1-800-831-9146; J.P. Morgan Securities LLC, 383 Madison Avenue, New York, New York 10179, Attention: Investment Grade Syndicate Desk, 3rd Floor, telephone collect at 1-212-834-4533; and Wells Fargo Securities, LLC, 608 2nd Avenue South, Suite 1000, 608 2nd Avenue South, Suite 1000, Minneapolis, Minnesota 55402, Attention: WFS Customer Service, email: wfscustomerservice@wellsfargo.com or telephone: 1-800-645-3751. Electronic copies of the preliminary prospectus supplement and accompanying prospectus are also available on the SEC’s web site at www.sec.gov.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy the Notes, nor shall there be any sale of the Notes in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Cencora

Cencora is a leading global pharmaceutical solutions organization centered on improving the lives of people and animals around the world. We partner with pharmaceutical innovators across the value chain to facilitate and optimize market access to therapies. Care providers depend on us for the secure, reliable delivery of pharmaceuticals, healthcare products, and solutions. Our 46,000+ worldwide team members contribute to positive health outcomes through the power of our purpose: We are united in our responsibility to create healthier futures. Cencora is ranked #10 on the Fortune 500 and #24 on the Global Fortune 500 with more than $290 billion in annual revenue.

Cencora’s Cautionary Note Regarding Forward-Looking Statements

Certain of the statements contained in this press release are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Securities Exchange Act”). Words such as “aim,” “anticipate,” “believe,” “can,” “continue,” “could,”, “estimate,” “expect,” “intend,” “may,” “might,” “on track,” “opportunity,” “plan,” “possible,” “potential,” “predict,” “project,” “seek,” “should,” “strive,” “sustain,” “synergy,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances and speak only as of the date hereof. These statements are not guarantees of future performance and are based on assumptions and estimates that could prove incorrect or could cause actual results to vary materially from those indicated. A more detailed discussion of the risks and uncertainties that could cause our actual results to differ materially from those indicated is included in the “Risk Factors” and “Management’s Discussion and Analysis” sections in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2024 and elsewhere in that report and other reports filed by the Company pursuant to the Securities Exchange Act. The Company undertakes no obligation to publicly update or revise any forward-looking statements, except as required by the federal securities laws.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241202365743/en/

Bennett S. Murphy

Senior Vice President, Head of Investor Relations and Treasury

610-727-3693

bennett.murphy@cencora.com

Source: Cencora

FAQ

What is the total value of Cencora's (COR) December 2024 senior notes offering?

Cencora's senior notes offering totals $1.8 billion, comprising three tranches of $500 million, $600 million, and $700 million.

What are the interest rates for Cencora's (COR) new senior notes?

The notes have three different rates: 4.625% for 2027 notes, 4.850% for 2029 notes, and 5.150% for 2035 notes.

What is the purpose of Cencora's (COR) December 2024 notes offering?

The proceeds will be used to finance the acquisition of the majority of Retina Consultants of America and for general corporate purposes.

When is the expected closing date for Cencora's (COR) notes offering?

The offering is expected to close on December 9, 2024, subject to customary closing conditions.