CVS Health’s $2 Billion Debt Offering and $4.5 Billion Debt Tender Offers


Simpson Thacher represented the underwriters in the transaction.

CVS Health Corporation executed its public offering of $2 billion of senior notes, consisting of $750 million of 1.3% senior notes due 2027 and $1.25 billion of 1.875% senior notes due 2031. The 2027 notes represent a further issuance of CVS Health’s 1.3% senior notes due 2027 issued in an aggregate principal amount of $1.5 billion on August 21, 2020. The offering closed December 16, 2020. Barclays Capital Inc., Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC acted as underwriters.

In addition, Barclays, BofA Securities, Inc. and Goldman Sachs acted as dealer managers, in connection with debt tender offers by CVS Health with respect to $1.5 billion of certain tranches of senior notes due 2023, $1 billion of certain tranches of senior notes due 2025 and $2 billion of a tranche of senior notes due 2028.

CVS Health is the nation’s premier health innovation company. CVS Health has more than 9,900 retail locations, approximately 1,100 walk-in medical clinics, a leading pharmacy benefits manager with approximately 103 million plan members, a dedicated senior pharmacy care business serving more than one million patients per year and expanding specialty pharmacy services. CVS Health also serves an estimated 33 million people through traditional, voluntary and consumer-directed health insurance products and related services, including expanding Medicare Advantage offerings and a leading standalone Medicare Part D prescription drug plan.

The Simpson Thacher team for the transactions included Roxane Reardon (Picture), Stephanie Rowan and Lauren Maxfield (Capital Markets); Nancy Mehlman, Jonathan Cantor and Kris Liu (Tax); Patricia Adams (Benefits); Michael R. Isby (Environmental); Melanie Jolson and Ellie Gladstone (Intellectual Property); and Jennie Getsin (FINRA and Blue Sky).

Involved fees earner: Patricia Adams – Simpson Thacher & Bartlett; Jonathan Cantor – Simpson Thacher & Bartlett; Jennie Getsin – Simpson Thacher & Bartlett; Elizabeth Gladstone – Simpson Thacher & Bartlett; Michael Isby – Simpson Thacher & Bartlett; Melanie Jolson – Simpson Thacher & Bartlett; Kris Liu – Simpson Thacher & Bartlett; Lauren Maxfield – Simpson Thacher & Bartlett; Nancy Mehlman – Simpson Thacher & Bartlett; Roxane Reardon – Simpson Thacher & Bartlett; Stephanie Rowan – Simpson Thacher & Bartlett;

Law Firms: Simpson Thacher & Bartlett;

Clients: Bank of America Securities; Barclays Capital ; Goldman Sachs & Co.; J.P. Morgan Securities LLC;

Author: Ambrogio Visconti