Cencora Announces Pricing of $1.8 Billion Senior Notes in Public Offering

Cencora, Inc. (NYSE: COR) made a significant financial move by pricing a collective $1.8 billion in senior notes through a public offering, as per the 8-K SEC Filing on December 2, 2024.

The company specified that they have priced $500,000,000 aggregate principal amount of 4.625% Senior Notes due 2027, $600,000,000 aggregate principal amount of 4.850% Senior Notes due 2029, and $700,000,000 aggregate principal amount of 5.150% Senior Notes due 2035. This offering is underwritten and registered publicly.

On the same day, Cencora entered into an Underwriting Agreement with BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, and Wells Fargo Securities, LLC as representatives. This agreement outlines the issuance and sale of the Notes, which will be the company’s senior unsecured obligations.

The Underwriting Agreement includes various provisions such as representations, warranties, conditions, and covenants from both the Company and the Underwriters. They expect to finalize the sale of the Notes on December 9, 2024, subject to specified closing conditions.

Cencora plans to utilize the expected net proceeds of approximately $1.79 billion from this offering to fund a portion of a previously mentioned proposed acquisition, namely the majority of Retina Consultants of America, and to cover related fees and expenses, along with general corporate purposes.

It is essential to note that the offer and sale of the Notes have gone through proper registration under the Securities Act of 1933. The registration was conducted under the Shelf Registration Statement (No. 333-283481) filed with the SEC on November 26, 2024.

While the completion of the offering is not reliant on the Acquisition, the Company anticipates investing the proceeds in high-quality, short-term debt securities until the funds are directed towards the intended purposes.

Moreover, the filing disclosed that several underwriters and their affiliates have been instrumental in providing a range of financial services to Cencora in the past and may continue to do so in the future. The nature of these services includes investment banking, commercial banking, derivative transactions, and financial advisory services.

The filing also included a cautionary note on forward-looking statements, reminding investors that certain statements made in the report are subject to uncertainties and changes in circumstances. Cencora expressed that they are not obligated to update or revise these statements, except as required by federal securities laws.

This announcement outlined in the 8-K filing sheds light on Cencora’s strategic financial decisions and marks a significant step in the company’s growth trajectory.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Cencora’s 8K filing here.

Cencora Company Profile

Cencora, Inc sources and distributes pharmaceutical products. The company's U.S. Healthcare Solutions segment distributes pharmaceuticals, over-the-counter healthcare products, home healthcare supplies and equipment, and related services to acute care hospitals and health systems, independent and chain retail pharmacies, mail order pharmacies, medical clinics, long-term care and alternate site pharmacies, and other customers; provides pharmacy management, staffing, and other consulting services; supply management software to retail and institutional healthcare providers; packaging solutions to various institutional and retail healthcare providers; clinical trial support, product post-approval, and commercialization support services; data analytics, outcomes research, and additional services for biotechnology and pharmaceutical manufacturers; pharmaceuticals, vaccines, parasiticides, diagnostics, micro feed ingredients, and other products to the companion animal and production animal markets; and sales force services to manufacturers.