Further to the announcement of 20 November 2012, Alliance Boots reports today that its lenders have elected to extend over £5 billion of existing private senior syndicated loan facilities by two to three years, with staggered maturities starting in 2016. This equates to over 80% of such facilities.
The majority of these facilities were to mature shortly before the August 2015 expiry of the Walgreen Co. (Walgreens) option to proceed to a full combination with Alliance Boots (through acquiring the 55% of Alliance Boots equity not owned by Walgreens).
Overwhelming lender approval has also been given for all requested amendments to the financing documents, including certain amendments to facilitate the full combination of Alliance Boots with Walgreens. This includes permitting loans to remain in place post exercise of Walgreens option.
Deutsche Bank, UniCredit and KKR Capital Markets were the arrangers for this highly successful transaction.
George Fairweather, Group Finance Director, Alliance Boots, commented: “Our diverse lender group have been hugely supportive, enabling us to extend loans at attractive rates, more than two and a half years before the majority mature. This is a powerful recognition of our ongoing strong financial performance which, combined with prudent and active capital management, enables us to further invest for the future, while at the same time continuing to reduce net borrowings.”