Walgreens Boots Alliance tender offer extended by one day

NEW YORK - Blazing Star Merger Sub announced Wednesday it has extended the expiration time for its cash tender offers for Walgreens Boots Alliance (NASDAQ:WBA) outstanding senior notes by one day to 5:00 p.m. New York City time on Wednesday. The pharmacy retail giant, currently valued at $10.31 billion, has seen its stock rise nearly 28% year-to-date, according to InvestingPro data, which also indicates the stock is slightly undervalued at its current price of $11.92.

The extension affects tender offers for all of Walgreens’ outstanding notes across multiple series with maturity dates ranging from 2025 to 2050, as well as Walgreen Co.’s 4.400% notes due 2042. With total debt of approximately $30 billion and an attractive dividend yield of 8.39%, the company’s debt management strategy is crucial for investors. For detailed analysis of WBA’s debt structure and financial health, check out the comprehensive research report available on InvestingPro.

According to the announcement, the settlement date remains August 28, 2025. The company stated it intends to extend the expiration time to align the settlement date with the closing of its pending merger with Walgreens. Discover more exclusive insights about merger implications and valuations with InvestingPro’s advanced analytics and expert research reports, helping investors make informed decisions during critical corporate events.

The tender offer has already received significant participation, with more than 88% of the GBP£300 million 3.600% Notes due 2025 tendered, along with substantial portions of other note series. For example, approximately 92% of the 4.100% Notes due 2050 and 97% of the 4.650% Notes due 2046 have been tendered.

The offers are conditioned upon the closing of Blazing Star’s acquisition of Walgreens pursuant to the merger agreement dated March 6, 2025, where Blazing Star Merger Sub will merge with and into Walgreens Boots Alliance, with Walgreens surviving as a wholly-owned subsidiary of Blazing Star Parent.

The withdrawal deadline of August 4, 2025, has already passed, meaning notes that have been tendered cannot be withdrawn.

Citigroup Global Markets Inc. is serving as the dealer manager for the offers, with Global Bondholder Services Corporation acting as the depositary and information agent.

The information is based on a press release statement from Blazing Star Merger Sub.

In other recent news, Walgreens Boots Alliance has announced several significant developments. Blazing Star Merger Sub, Inc. has extended the tender offer deadline for Walgreens Boots Alliance’s outstanding notes to August 26, 2025, with settlement now scheduled for August 28. This extension is part of the anticipated closing of Blazing Star’s acquisition of Walgreens Boots Alliance. Additionally, Walgreens has expanded its specialty pharmacy network to include 265 limited distribution drugs, enhancing its portfolio of specialty medications.

Blazing Star has also announced pricing details for its cash tender offers for all outstanding notes of Walgreens Boots Alliance, covering multiple series with maturity dates ranging from 2025 to 2050. Furthermore, Walgreens Boots Alliance disclosed a temporary blackout period for its employee retirement savings plans, linked to the pending merger with Blazing Star Parent, LLC. As part of the merger agreement, each share of Walgreens common stock will be exchanged for $11.45 in cash and one divested asset proceed right. The Walgreens Retirement Savings Plan and the Walgreens Puerto Rico Retirement Savings Plan will remove the WBA Stock Fund as an investment option, with assets being reinvested in age-aligned target date funds.

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