Walgreens Boots obtains $1.5 billion of revolving credit facilities

By Sarah Lizee

Olympia, Wash., Sept. 4 – Walgreens Boots Alliance, Inc. entered into $1.5 billion of revolving credit agreements on Friday, according to an 8-K filing with the Securities and Exchange Commission.

The company obtained three $500 million senior unsecured revolvers with HSBC Bank USA, NA, Citibank, NA and UniCredit Bank AG, New York Branch as separate lead arrangers.

The revolvers’ termination date is the earlier of 18 months following the effective date, subject to extension, and the date of termination in whole of the aggregate amount of the commitments.

Loans will be available in U.S. dollars, pound sterling and euros.

Borrowings will bear interest at Libor plus 95 basis points.

There is also an upfront fee and an unused commitment fee.

There is a financial covenant requiring that, as of the last day of each fiscal quarter, commencing with the first full quarter ending after the effective date, the ratio of consolidated debt to total capitalization will not be greater than 0.6 to 1.0, provided that the ratio is subject to increase in some circumstances.

Walgreens is a Deerfield, Ill.-based drugstore chain.

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