News & Announcements

Weil Advises Goldman Sachs and Merrill Lynch on $4 Billion Senior Notes Offering by Walgreen Co.

Proceeds to finance Walgreens’ previously announced acquisition of a 45% interest in Alliance Boots
A Weil team, led by New York partner Matthew Bloch, advised Goldman, Sachs & Co. and Merrill Lynch, Pierce, Fenner & Smith Incorporated on a $4 billion public offering of senior notes by Walgreen Co. (Walgreens) in five tranches: $550 million floating rate notes due 2014, $750 million 1.0% notes due 2015, $1 billion 1.8% notes due 2017, $1.2 billion 3.1% notes due 2022, and $500 million 4.4% notes due 2042.

Walgreens will use a portion of the net proceeds from the offering to repay in full its borrowings under its $3.5 billion unsecured 364-day bridge term loan, used to finance a portion of its previously announced $6.7 billion strategic investment in Alliance Boots GmbH, a Switzerland-based international pharmacy-led health and beauty group. Weil’s global finance team also advised Goldman Sachs on the bridge facility, which closed in August 2012.

In addition to Matthew Bloch, the New York-based Weil team advising Goldman Sachs and Merrill Lynch included Capital Markets counsel Stuart Morrissy and associates Jordan Fasbender, Alicia Carroll and Laura Salvatori.

In addition to Walgreens, Weil’s capital markets team has advised on a number of noteworthy investment grade bond offerings in 2012 including:

  • Morgan Stanley and Deutsche Bank, as joint bookrunning managers, on a $1.9 billion senior notes offering by Molson Coors Company, a major beer brewer and distributor, to finance a portion of its $3.5 billion acquisition of StarBev, an operator of nine breweries in Central and Eastern Europe, from CVC Capital Partners, and Morgan Stanley and Deutsche Bank, as joint lead arrangers and joint bookrunners and Morgan Stanley as administrative agent, on the related $1.9 billion senior unsecured bridge facility. The Weil team included Banking & Finance partner Morgan Bale (London); Capital Markets associates Oliver DeGeest and Janeane Menaldino; and Banking & Finance associates Zillah Kisswany and Amara Gossin (all in New York unless otherwise specified).
  • The Estée Lauder Companies, manufacturer and marketer of skin care, makeup, fragrance and hair care products, in a $500 million offering of investment grade senior notes having 10- and 30-year maturities. The coupon for the 10-year maturity note set a new all-time record low for a company with an “A” rating by both Moody’s and S&P, while the coupon for the 30-year tied the all-time record low. This was the latest in a series of debt and equity offerings for this long-time client. The New York-based Weil team included Capital Markets partner Matthew Bloch; Public Company Advisory Group partner Howard Dicker; Tax partner William Horton; Capital Markets associates Barbra Broudy, Jayshree Mahtani and Jessica Wang; and Tax associate Jiho Juhn.
  • ČEZ, the largest electricity generation and distribution company and one of the largest companies in the Czech Republic, on its $1 billion Yankee bond offering. The offering was ČEZ’s first offering into the U.S. market since 1997. The Weil team included Prague M&A partners Petr Hanzal and Karel Drevinek; Tax partner David Bower (Washington D.C.); and London Capital Markets associates Lindsay Germano, Rob Beard, Adam Howard and Georgina Wilson; Prague M&A associates Pavel Prochazka, Martin Hulena and Robert Rabas; and Tax associates Ajit Gokhale (New York) and Ian Ferreira (London).

With more than 125 dedicated partners and associates in our offices worldwide, Weil’s banking & finance and capital markets practices provide “one-stop shopping” on highly complex financings and true international deal execution and local law advice in many of the world’s key jurisdictions, including New York, London, Paris, Frankfurt and Hong Kong.

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