CVS Caremark receives tenders for $957.72 million 6.302% preferreds

New York, Dec. 7 - CVS Caremark Corp. said holders tendered $957,715,000 of its $1 billion of outstanding 6.302% enhanced capital advantaged preferred securities in its offer to buy the securities.

Settlement is scheduled for Dec. 8.

As announced on Nov. 29, CVS will pay par for preferreds tendered by 5 p.m. ET on Dec. 7, the expiration date.

Holders also will receive accrued interest to but not including the settlement date.

The purpose of the offer is to refinance a portion of CVS Caremark's outstanding debt, according to a company press release.

The offer did have conditions, but was not contingent on any minimum amount of notes being tendered.

The notes were issued on May 25, 2007. The coupon is 6.302% until June 1, 2012, when it will float to a rate of Libor plus 206.5 basis points.

The company said on Aug. 22 that it received enough consents from holders of its 6.125% senior notes due Aug. 15, 2016 to pave the way for transactions involving the 6.302% preferred securities due 2062.

As previously noted, the consents allowed the company to terminate the replacement capital covenant, which was entered into on May 25, 2007.

Under the replacement capital covenant, CVS was prohibited from repurchasing, redeeming or repaying its ECAPS on or before June 1, 2047, save for proceeds from the sale of equity earmarked for the securities, according to the Woonsocket, R.I., pharmacy retailer.

Barclays Capital Inc. (800 438-3242 or collect 212 528-7581) and Deutsche Bank Securities Inc. (855 287-1922 or collect 212 250-7527) are the dealer managers. D.F. King & Co., Inc. (800 949-2583 or for banks and brokers only (212 269-5550) is the depository and information agent.

CVS Caremark launches tender offer for $1 billion 6.302% preferreds

By Susanna Moon

Chicago, Nov. 29 - CVS Caremark Corp. said it began a cash tender offer for its $1 billion of outstanding 6.302% enhanced capital advantaged preferred securities.

CVS said it will pay par for preferreds tendered by 5 p.m. ET on Dec. 7, the expiration date.

Holders also will pay accrued interest to but not including the settlement date.

The purpose of the offer is to refinance a portion of CVS Caremark's outstanding debt, according to a company press release.

The offer does have some conditions, but is not contingent on any minimum amount of notes being tendered.

The notes were issued on May 25, 2007. The coupon is 6.302% until June 1, 2012, when it will float to a rate of Libor plus 206.5 basis points.

The company said on Aug. 22 that it received enough consents from holders of its 6.125% senior notes due Aug. 15, 2016 to pave the way for transactions involving the 6.302% preferred securities due 2062.

As previously noted, the consents allowed the company to terminate the replacement capital covenant, which was entered into on May 25, 2007.

Under the replacement capital covenant, CVS was prohibited from repurchasing, redeeming or repaying its ECAPS on or before June 1, 2047, save for proceeds from the sale of equity earmarked for the securities, according to the Woonsocket, R.I., pharmacy retailer.

Barclays Capital Inc. (800 438-3242 or collect 212 528-7581) and Deutsche Bank Securities Inc. (855 287-1922 or collect 212 250-7527) are the dealer managers. D.F. King & Co., Inc. (800 949-2583 or for banks and brokers only (212 269-5550) is the depository and information agent.

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