Summary by Moomoo AI
On December 3, 2024, CVS Health announced the offering of $3 billion in junior subordinated notes, comprising $2.25 billion of 7.000% Series A notes due 2055 and $750 million of 6.750% Series B notes due 2054. The Series A notes will bear interest at 7.000% until March 10, 2030, and the Series B notes at 6.750% until December 10, 2034, with rates resetting based on the Five-year U.S. Treasury Rate plus a spread.The proceeds will be used for tender offers to repurchase existing senior notes, including those due in 2025 and 2040, and for general corporate purposes. The notes are unsecured and subordinated, ranking junior to existing senior debt. Interest payments can be deferred for up to 10 years.The offering is not contingent on the completion of the tender offers. The notes will not be listed on any securities exchange, and the offering is expected to close on December 10, 2024.
