Published on 2/5/2024 in the Prospect News Investment Grade Daily.
New Issue: Cencora prices $500 million 5.125% senior notes due 2034 at 99.867
By Marisa Wong
Los Angeles, Feb. 5 – Cencora, Inc. priced $500 million of 5.125% senior notes due 2034 (Baa2/BBB+/A-) on Monday, according to a 424B5 filing with the Securities and Exchange Commission.
The notes priced at 99.867 to yield 5.142%, or with a spread of 98 basis points over Treasuries.
The notes will feature an optional make-whole call followed by an optional par call.
The notes will also be putable at 101 if a change-of-control triggering event occurs.
BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities, LLC, BNP Paribas Securities Corp. and U.S. Bancorp Investments, Inc. are the joint bookrunners.
The company plans to use proceeds of the offering to redeem all of its 3.4% senior notes due May 15, 2024, with any remaining net proceeds to be used for general corporate purposes.
Formerly AmerisourceBergen Corp., Cencora is a drug wholesale company based in Conshohocken, Pa.
| Issuer: | Cencora, Inc.
|
| Amount: | $500 million
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| Issue: | Senior notes
|
| Maturity: | Feb. 15, 2034
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| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities, LLC, BNP Paribas Securities Corp. and U.S. Bancorp Investments, Inc.
|
| Senior co-managers: | Morgan Stanley & Co LLC, Scotia Capital (USA) Inc. and TD Securities (USA) LLC
|
| Co-managers: | PNC Capital Markets LLC, SG Americas Securities, LLC and MUFG Securities Americas Inc.
|
| Trustee: | U.S. Bank Trust Co., NA
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| Counsel to issuer: | Morgan, Lewis & Bockius LLP
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| Counsel to underwriters: | Cravath, Swaine & Moore LLP
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| Coupon: | 5.125%
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| Price: | 99.867
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| Yield: | 5.142%
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| Spread: | Treasuries plus 98 bps
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| Call options: | Make-whole call at Treasuries plus 15 bps before Nov. 15, 2033; par call after that
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| Change-of-control put: | At par
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| Trade date: | Feb. 5
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| Settlement date: | Feb. 7
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| Ratings: | Moody’s: Baa2
|
| S&P: BBB+
|
| Fitch: A-
|
| Distribution: | SEC registered
|
| Cusip: | 03073EAU9
|
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