Walgreens Boots Alliance Early-Settles Certain Prepaid Variable Share Forward Transactions and Sells Related Shares of Cencora For Approximately $300 Million of Proceeds
Walgreens Boots Alliance (WBA) has announced the early settlement of certain prepaid variable share forward transactions related to Cencora shares, resulting in approximately $300 million in proceeds. The transaction involves the delivery of 6.1 million Cencora shares and a concurrent sale of 1.3 million additional shares.
Following the settlement, WBA retains approximately 12.6 million Cencora shares pledged under remaining forward contracts, scheduled to mature during March, June, and September 2025. The company's ownership in Cencora has decreased from 10% to approximately 6%. The proceeds will primarily be used for debt paydown, specifically addressing fiscal year 2026 debt maturities, and general corporate purposes.
The transaction includes a net aggregate cash payment of approximately $20 million to financial institutions. Despite the reduced ownership, WBA maintains its strategic partnership with Cencora, with Ornella Barra continuing to serve on Cencora's Board of Directors.
Walgreens Boots Alliance (WBA) ha annunciato la chiusura anticipata di alcune transazioni di acquisto di azioni variabili prepagate relative alle azioni di Cencora, comportando circa 300 milioni di dollari di proventi. La transazione prevede la consegna di 6,1 milioni di azioni Cencora e una vendita contestuale di 1,3 milioni di azioni aggiuntive.
Dopo la chiusura, WBA conserva circa 12,6 milioni di azioni Cencora impegnate in contratti futuri rimanenti, programmati per scadere a marzo, giugno e settembre 2025. La partecipazione dell'azienda in Cencora è diminuita dal 10% a circa il 6%. I proventi saranno utilizzati principalmente per il rimborso del debito, affrontando specificamente le scadenze del debito dell'anno fiscale 2026, e per fini aziendali generali.
La transazione include un pagamento netto aggregato di circa 20 milioni di dollari a istituzioni finanziarie. Nonostante la riduzione della partecipazione, WBA mantiene la sua partnership strategica con Cencora, con Ornella Barra che continua a far parte del Consiglio di Amministrazione di Cencora.
Walgreens Boots Alliance (WBA) ha anunciado el cierre anticipado de ciertas transacciones de acciones variables prepagadas relacionadas con las acciones de Cencora, lo que resultará en aproximadamente 300 millones de dólares en ingresos. La transacción implica la entrega de 6,1 millones de acciones de Cencora y una venta concurrente de 1,3 millones de acciones adicionales.
Tras el cierre, WBA retiene aproximadamente 12,6 millones de acciones de Cencora comprometidas bajo contratos a plazo restantes, programados para vencer en marzo, junio y septiembre de 2025. La participación de la compañía en Cencora ha disminuido del 10% a aproximadamente el 6%. Los ingresos se utilizarán principalmente para la reducción de la deuda, abordando específicamente los vencimientos de deuda del año fiscal 2026, y para fines corporativos generales.
La transacción incluye un pago en efectivo agregado neto de aproximadamente 20 millones de dólares a instituciones financieras. A pesar de la reducción en la propiedad, WBA mantiene su asociación estratégica con Cencora, con Ornella Barra continuando en la Junta Directiva de Cencora.
월그린 부츠 얼라이언스(WBA)는 센코라 주식과 관련된 특정 선불 변동 주식 거래의 조기 정산을 발표하였으며, 약 3억 달러의 수익이 발생했습니다. 이 거래는 610만 주의 센코라 주식 인도와 130만 주의 추가 주식 매각을 포함합니다.
정산 후 WBA는 남은 선도 계약에 따라 약 1260만 주의 센코라 주식을 보유하고 있으며, 이 계약은 2025년 3월, 6월 및 9월에 만료될 예정입니다. 회사의 센코라 소유 지분은 10%에서 약 6%로 감소되었습니다. 수익금은 주로 대출 상환에 사용되며, 특히 2026 회계 연도의 만기 대출을 해결하고 일반 기업 용도로 사용됩니다.
이번 거래에는 금융 기관에 약 2000만 달러의 순 현금 지급이 포함됩니다. 지분이 줄어든 가운데도 WBA는 센코라와의 전략적 파트너십을 유지하고 있으며, 오르넬라 바라가 센코라 이사회의 일원으로 계속 활동하고 있습니다.
Walgreens Boots Alliance (WBA) a annoncé la liquidation anticipée de certaines transactions d'actions variables prépayées liées aux actions de Cencora, ce qui entraîne des revenus d'environ 300 millions de dollars. La transaction implique la livraison de 6,1 millions d'actions Cencora et une vente concomitante de 1,3 million d'actions supplémentaires.
Après la liquidation, WBA conserve environ 12,6 millions d'actions Cencora engagées dans des contrats à terme restants, dont l'échéance est prévue pour mars, juin et septembre 2025. La participation de l'entreprise dans Cencora a diminué de 10 % à environ 6 %. Les revenus seront principalement utilisés pour le remboursement de la dette, en s'attaquant spécifiquement aux échéances de la dette de l'exercice 2026, ainsi qu'à des fins générales de l'entreprise.
La transaction comprend un paiement net en espèces d'environ 20 millions de dollars aux établissements financiers. Malgré la réduction de la propriété, WBA maintient son partenariat stratégique avec Cencora, Ornella Barra continuant de siéger au conseil d'administration de Cencora.
Walgreens Boots Alliance (WBA) hat die vorzeitige Abwicklung bestimmter vorab bezahlter variabler Aktienforwardgeschäfte im Zusammenhang mit Cencora-Aktien angekündigt, was zu Einnahmen von rund 300 Millionen Dollar führt. Die Transaktion umfasst die Lieferung von 6,1 Millionen Cencora-Aktien und einen gleichzeitigen Verkauf von 1,3 Millionen zusätzlichen Aktien.
Nach der Abwicklung behält WBA etwa 12,6 Millionen Cencora-Aktien zurück, die im Rahmen verbleibender Forward-Verträge verpfändet sind, die im März, Juni und September 2025 fällig werden. Der Anteil des Unternehmens an Cencora ist von 10 % auf etwa 6 % gesunken. Die Einnahmen werden hauptsächlich zur Tilgung von Schulden verwendet, insbesondere zur Bewältigung der Fälligkeiten der Schulden im Geschäftsjahr 2026, sowie für allgemeine Unternehmenszwecke.
Die Transaktion beinhaltet eine Nettobarzahlung von etwa 20 Millionen Dollar an Finanzinstitute. Trotz des gesunkenen Anteils behält WBA seine strategische Partnerschaft mit Cencora bei, wobei Ornella Barra weiterhin im Board of Directors von Cencora tätig ist.
- Generates approximately $300 million in immediate proceeds
- Retains 12.6 million Cencora shares with potential for additional future proceeds
- Proactively addresses debt maturities for fiscal 2026
- Reduction in ownership stake in Cencora from 10% to 6%
- Net cash payment of $20 million required for early settlement
- Recently suspended dividend payments
Insights
This strategic financial maneuver by WBA demonstrates a calculated approach to addressing its pressing debt obligations. The early settlement of forward contracts and share sale, generating
Debt Management Strategy: The timing of this transaction, combined with the recent dividend suspension, shows an aggressive approach to tackle fiscal 2026 debt maturities. The company is proactively restructuring its balance sheet while Cencora's stock value remains favorable.
Financial Engineering: The transaction structure is particularly noteworthy:
- Early settlement of contracts originally worth
$1.1 billion - Delivery of 6.1 million Cencora shares
- Additional sale of 1.3 million shares through unregistered block trade and share repurchase
- Retention of 12.6 million shares under remaining forward contracts
The execution timing suggests WBA is capitalizing on Cencora's stock appreciation since 2023, effectively monetizing these gains while maintaining strategic flexibility through remaining forward contracts. The reduction in ownership stake from
The remaining forward contracts maturing throughout 2025 provide additional financial optionality, potentially offering more proceeds depending on Cencora's stock performance. This structured approach to asset monetization, combined with the dividend suspension, signals a comprehensive strategy to strengthen WBA's financial position ahead of significant 2026 debt maturities.
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
$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.
(WBA-GEN)
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WBA Media Relations
WBA Investor Relations
Eric Wasserstrom, Investor.relations@wba.com
Source: Walgreens Boots Alliance
FAQ
How much did WBA receive from the early settlement of Cencora shares?
How many Cencora shares does WBA still own after the transaction?
When will WBA's remaining prepaid variable share forward contracts mature?
How will WBA use the proceeds from the Cencora share transaction?
Will the reduced ownership affect WBA's partnership with Cencora?
