Cencora, Inc. (COR, Financial) has announced the pricing of a substantial $1.8 billion aggregate principal amount of senior notes in a registered public offering. The offering includes $500 million of 4.625% Senior Notes due 2027, $600 million of 4.850% Senior Notes due 2029, and $700 million of 5.150% Senior Notes due 2035. This strategic financial maneuver is aimed at supporting the company's growth initiatives, including the proposed acquisition of the majority of Retina Consultants of America.
The company has entered into an Underwriting Agreement with major financial institutions including BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, and Wells Fargo Securities, LLC. These institutions will act as underwriters for the offering, which is expected to close on December 9, 2024, subject to customary closing conditions.
Cencora anticipates net proceeds of approximately $1.79 billion from the offering, after deducting underwriting discounts and expenses. The funds are earmarked for financing the acquisition, covering related fees, and supporting general corporate purposes. Notably, the completion of the offering is not contingent upon the acquisition's finalization, allowing Cencora flexibility in its financial planning.
Pending the application of the proceeds, Cencora plans to invest in high-quality, short-term debt securities. This move underscores the company's commitment to maintaining financial stability while pursuing strategic growth opportunities.
The offering is registered under the Securities Act of 1933, as amended, through Cencora's shelf registration statement filed with the Securities and Exchange Commission. This financial strategy highlights Cencora's proactive approach to leveraging capital markets for strategic acquisitions and corporate development.
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