CVS HEALTH Corp (CVS): debt financing — CVS closes $10.6B Oak Street Health buy, funds $5B via loan

CVS HEALTH Corp

Acquired Oak Street Health for $39.00 per share in cash, total enterprise value ~$10.6B.
Financed portion of deal with $5.0B unsecured 364-day term loan (Barclays as agent); matures Apr 30, 2024.
Oak Street Health remains multi-payor primary care provider; adds value-based care to CVS Health platform.
As result of Merger, Oak Street Health will repurchase $920M of 0% convertible notes due 2026 at 100% par plus accrued interest.
CVS Health committed to maintaining current credit ratings; discussion on Q1 2023 earnings call May 3.

item 1.01 item 2.03 item 2.04 item 8.01 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

CVS HEALTH Corp incurred term loan of $5.0 billion with Barclays Bank PLC at term SOFR or the base rate, plus, in each case, an applicable margin maturing April 30, 2024.

Instrument: term loan
Principal: $5.0 billion
Counterparty: Barclays Bank PLC
Rate: term SOFR or the base rate, plus, in each case, an applicable margin
Maturity: April 30, 2024
Event: incurrence

Exact text from the filing

On May 1, 2023, CVS Health Corporation, a Delaware corporation (“CVS Health”) entered into a 364-Day Term Loan Agreement (the “Term Loan Agreement”) with the lenders party thereto and Barclays Bank PLC, as administrative agent. The Term Loan Agreement provides for total term loan commitments in an aggregate principal amount of $5.0 billion.

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

CVS HEALTH Corp entered into Term Loan Agreement valued at $5.0 billion.

Action: entry
Agreement: credit facility
Value: $5.0 billion

Exact text from the filing

The Merger was financed in part with borrowings of $5.0 billion under the Term Loan Agreement, described above under Item 1.01 of this Current Report.

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CVS HEALTH Corp filing history →

Source: SEC EDGAR

accession 0000947871-23-000511

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