Walgreens Boots Alliance Early-Settles Certain Prepaid Variable Share Forward Transactions and Sells Related Shares of Cencora For Approximately $300 Million of Proceeds
Transaction Highlights
- Walgreens Boots Alliance announces early settlement of certain prepaid variable share forward transactions with respect to shares of Cencora for delivery of an aggregate 6.1 million shares
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Concurrent with the early settlement, the Company executed a sale of the remaining 1.3 million shares of Cencora pledged under the early settled contracts. The Company receives approximately
from the early settlement and the concurrent sale of shares$300 million - Following today’s early settlement, the Company owns approximately 12.6 million shares of Cencora pledged under the remaining prepaid variable share forward contracts, which have the potential to provide additional cash proceeds at maturity. These remaining prepaid variable share forward contracts are mainly scheduled to mature during March, June and September of calendar year 2025.
- Use of proceeds will primarily be for debt paydown, as the Company proactively seeks to address its debt maturities in fiscal year 2026, and for general corporate purposes
As part of the early settlement of the transactions prior to their scheduled maturities, WBA will deliver to the financial institutions an aggregate of approximately 6.1 million shares of Cencora, while paying a net aggregate cash payment of approximately
Concurrent with these early settlements, WBA today announced that it has sold shares of Cencora common stock in an unregistered block trade pursuant to Rule 144 for proceeds of approximately
Proceeds to WBA will be used primarily for debt paydown and general corporate purposes. The proceeds from these transactions as well as other actions, including the recent suspension of the dividend, further help position the Company to address its upcoming debt maturities in fiscal 2026.
Walgreens Boots Alliance’s ownership of Cencora’s common stock has decreased from approximately 10 percent to approximately six percent.
The sale has no impact to the long-term partnership between the two companies. Walgreens Boots Alliance remains fully committed to the strategic, mutually beneficial relationship with Cencora, which has been a strong and trusted partner since 2013. Chief Operating Officer, International of Walgreens Boots Alliance, Ornella Barra, will continue to serve on Cencora’s Board of Directors.
About Walgreens Boots Alliance
Walgreens Boots Alliance (Nasdaq: WBA) is an integrated healthcare, pharmacy and retail leader serving millions of customers and patients every day, with a 175-year heritage of caring for communities.
A trusted, global innovator in retail pharmacy with approximately 12,500 locations across the
WBA employs approximately 311,000 people, with a presence in eight countries and consumer brands including: Walgreens, Boots, Duane Reade, No7 Beauty Company and Benavides. The Company is proud of its contributions to healthy communities, a healthy planet, an inclusive workplace and a sustainable marketplace. In fiscal 2024, WBA scored
More Company information is available at www.walgreensbootsalliance.com.
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Eric Wasserstrom, Investor.relations@wba.com
Source: Walgreens Boots Alliance