CVS Caremark Corporation Announces Early Results of Tender Offers, Pricing,
Election of Early Settlement and Increase in the Maximum Tender Offer Amount
WOONSOCKET, R.I., Dec. 10, 2012
WOONSOCKET, R.I., Dec. 10, 2012 /PRNewswire/ --CVS Caremark Corporation
(NYSE: CVS) announced today the early tender results, applicable Reference
Yields and consideration payable in connection with its previously announced
cash tender offers (the "Tender Offers") commenced on November 26, 2012 for
(1) any and all of its 6.60% Senior Notes due 2019 (the "Any and All Notes")
and (2) up to a maximum amount of its 6.125% Senior Notes due 2016 and 5.750%
Senior Notes due 2017 (collectively, the "Maximum Tender Offer Notes" and
together with the Any and All Notes, the "Notes").
In addition, CVS Caremark has amended the terms of the Tender Offers to
increase the Maximum Tender Offer Amount such that the maximum aggregate
principal amount of the Maximum Tender Offer Notes tendered and accepted for
purchase will be equal to $1,325,000,000 less the aggregate principal amount
of the Any and All Notes tendered and accepted for purchase. Other than the
increase to the Maximum Tender Offer Amount, all other terms and conditions of
the Tender Offers, as previously announced, remain unchanged. The Tender
Offers are being made solely pursuant to CVS Caremark's Offer to Purchase
dated November 26, 2012, as amended or supplemented (the "Offer to Purchase").
Dave Denton, Executive Vice President and Chief Financial Officer stated:
"Through this transaction as well as our recent debt issuance, we are taking
advantage of the current favorable interest rate environment. This debt
refinancing will enhance our long-term debt structure and decrease our
interest expense going forward."
As of the previously announced early tender date and time of 5:00 p.m., New
York City time, on December 7, 2012 (the "Early Tender Date"), the principal
amounts of the Notes listed in the table below had been validly tendered and
not validly withdrawn. The table below also sets forth for each series of
Notes, among other things, the applicable Reference Yield and Total
Consideration payable for each $1,000 in principal amount of Notes tendered
and accepted for purchase pursuant to the Tender Offers:
Title CUSIP Principal Principal Acceptance UST Reference Fixed Early Accrued
of Number Amount Amount Priority Reference Yield Spread Tender Total Interest^(1)
Notes Outstanding Tendered Level Security (bps) Payment^(1)
Notes 126650BN9 $1,000,000,000 $602,958,000 1 Treasury 1.628% -15 $30 $1,305.20 $15.77^(3)
due Notes due
Senior $ U.S.
Notes 126650BE9 700,000,000 $278,619,000 2 Treasury 0.615% 10 $30 $1,193.83 $22.29^(4)
due Notes due
Notes 126650BH2 $1,750,000,000 $851,533,000 3 Treasury 0.615% 25 $30 $1,211.88 $ 3.99^(4)
due Notes due
(1) Per $1,000 principal amount of Notes tendered and accepted for purchase.
(2) Based on the Reference Yield of the applicable UST Reference Security as of 2:00 p.m., New York City time on December 7, 2012
as determined by the Dealer Managers, and excludes accrued and unpaid interest. The Total Consideration includes the Early Tender
(3) Based on a Settlement Date of December 11, 2012.
(4) Based on a Settlement Date of December 26, 2012.
Acceptance of tendered Notes may be subject to priority and proration as
described in the Offer to Purchase. Following the Expiration Date, any
validly tendered Notes that are not purchased pursuant to a Tender Offer will
be promptly returned to the tendering Holders. Definitive tender offer
results will not be available until after the Tender Offers expire at 11:59
p.m., New York City time, on December 21, 2012 (such date and time, as may be
extended, the "Expiration Date").
Holders of Notes validly tendered and not withdrawn at or prior to the Early
Tender Date and accepted for purchase will be eligible to receive the
applicable Total Consideration listed in the table above, which includes the
applicable Early Tender Payment (as defined in the Offer to Purchase).
Holders of Notes validly tendered and not withdrawn after the Early Tender
Date but at or prior to the Expiration Date and accepted for purchase will be
eligible to receive the applicable Tender Offer Consideration, namely the
applicable Total Consideration minus the applicable Early Tender Payment
specified in the table above. In addition to the Total Consideration or Tender
Offer Consideration, as applicable, Holders of Notes accepted for purchase
will receive Accrued Interest (as defined in the Offer to Purchase) on those
Notes from the last interest payment date with respect to those Notes to, but
not including, the applicable Settlement Date (as defined in the Offer to
The Withdrawal Deadline has passed and has not been extended. Holders of Notes
who validly tendered their Notes prior to the Withdrawal Deadline, and Holders
of Notes who validly tender their Notes after the Withdrawal Deadline but on
or prior to the Expiration Date, may not withdraw their tendered Notes unless
we are required to extend withdrawal rights under applicable law.
CVS Caremark also announced its election, with respect to the Any and All
Notes validly tendered and not validly withdrawn at or prior to the Early
Tender Date, to make payment for such Any and All Notes on December 11, 2012
(the "Early Settlement Date"). Payment for the Maximum Tender Offer Notes
validly tendered and accepted pursuant to the Maximum Tender Offers, and for
the Any and All Notes validly tendered at or prior to the Expiration Date and
not already purchased on the Early Settlement Date, will be made promptly
following acceptance after the Expiration Date (the "Final Settlement Date").
The Final Settlement Date is expected to be on December 26, 2012.
The Tender Offers are conditioned upon certain conditions described in the
Offer to Purchase. CVS Caremark expressly reserves the right, in its sole
discretion, subject to applicable law, to amend, extend or terminate any
Tender Offer at any time prior to the Expiration Date. The Tender Offers are
not conditioned on any minimum principal amount of Notes being tendered.
CVS Caremark has retained Barclays Capital Inc. and U.S. Bancorp Investments,
Inc. to act as Dealer Managers for the Tender Offers. D.F. King & Co., Inc.
has been retained to act as the tender and information agent for the Tender
Offers. For additional information regarding the terms of the Tender Offers,
please contact the Dealer Managers at Barclays Capital Inc. at (800) 438-3242
(toll-free) or (212) 528-7581 (collect) or at U.S. Bancorp Investments, Inc.
at (877) 558-2607 (toll-free) or (612) 336-7604 (collect). Requests for
documents and questions regarding the tendering of Notes may be directed to
D.F. King & Co., Inc. at (212) 269-5550 (for banks and brokers only) or (800)
949-2583 (for all others toll-free).
This press release does not constitute an offer to sell or purchase, or a
solicitation of an offer to sell or purchase, or the solicitation of tenders
with respect to, the Notes. No offer, solicitation, purchase or sale will be
made in any jurisdiction in which such an offer, solicitation, or sale would
be unlawful. The Tender Offers are being made solely pursuant to the Offer to
Purchase and the related Letter of Transmittal made available to Holders of
the Notes. None of CVS Caremark, the Dealer Managers, the Tender Agent, the
Information Agent or their respective affiliates is making any recommendation
as to whether or not Holders should tender all or any portion of their Notes
in the Tender Offers. Holders are urged to evaluate carefully all information
in the Offer to Purchase and the related Letter of Transmittal, consult their
own investment and tax advisers and make their own decisions whether to tender
Notes, and, if so, the principal amount of Notes to tender.
About the Company:
CVS Caremark is dedicated to helping people on their path to better health as
the largest integrated pharmacy company in the United States. Through the
company's more than 7,400 CVS/pharmacy® stores; its leading pharmacy benefit
manager serving more than 60 million plan members; and its retail health
clinic system, the largest in the nation with approximately 600 MinuteClinic®
locations, it is a market leader in mail order, retail and specialty pharmacy,
retail clinics, and Medicare Part D Prescription Drug Plans. As a pharmacy
innovation company with an unmatched breadth of capabilities, CVS Caremark
continually strives to improve health and lower costs by developing new
approaches such as its unique Pharmacy Advisor® program that helps people with
chronic diseases, such as diabetes, obtain and stay on their medications.
Find more information about how CVS Caremark is reinventing pharmacy for
better health at info.cvscaremark.com.
This press release contains certain forward-looking statements that are
subject to risks and uncertainties that could cause actual results to differ
materially. For these statements, the Company claims the protection of the
safe harbor for forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995. The Company strongly recommends that you become
familiar with the specific risks and uncertainties outlined under the Risk
Factors section in our Annual Report on Form 10-K for the year ended December
31, 2011 and under the section entitled "Cautionary Statement Concerning
Forward-Looking Statements" in our most recently filed Quarterly Report on
SOURCE CVS Caremark Corporation
Contact: Investors, Nancy Christal, Senior Vice President, Investor Relations,
+1-914-722-4704, or Media, Eileen H. Boone, Senior Vice President, Corporate
Communications & Community Relations, +1-401-770-4561
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