CVS Looks to Sell 44 Billion in Bonds

The popular pharmacy chain CVS announced on Tuesday that it will sell 44 billion dollars worth of bonds so that it can help pay for its acquisition of Aetna.

“Everyone on the buy side is going to be looking at this deal,” says Matt Salzillo, a portfolio manager for Ryan Labs Asset Management, an asset management firm with about $7 billion of bond investments. “We want to see how well the CVS deal is absorbed by the market.”

Although US interest rates rose this year slightly, providing a slow down for people buying foreign corporate debt.

CVS also announced it was hiring 5 investment banks to handle this bond sell. This to me is a little strange. Although I'm not as fully entrenched into IB like a lot of people on this site, even I know that's a little odd and high.

Will also be interesting to see where the yield falls on these bonds too. One thing to look at that might give an indication of this are the CVS bonds due in 2026 that yielded just above 4% on Monday.

What do you guys think of this move? Personally, I'm just a little confused at this since the purchase of Aetna hasn't been fully approved by regulators.

Add comment

Start Discussion

2 Comments

WSO Monkey Bot

O

6y

Hi Nelson_Van_Alden, any of these topics helpful:

£4.4 billion?! guys think it's going to hasten the implementation of prop trading ban in Europe (is this even ... Wow, look what I've just picked up on the Tube station! Although this estimate might not be ...
Is 720 GMAT (Q44/V44) a killer for Msc Finance? a top-tier investment bank Have my own startup company I'm looking to apply at the following programmes, ... pursue other measures to strengthen my profile? I'm quite worried about my Q44. Oxford- Msc ... I just had my first attempt at the GMAT and scored a 720 Q44/V44 (IR Score- 8). The Quant is quite ...
George Clooney's Accidental Tequila Company To Sell at $1 BIllion in Mexico, we would drink a lot of tequila. We'd go out to bars and restaurants and bartenders ... It's now being sold to Diageo for a cool **$1 Billion dollars ** The fact that this happens, makes me ... worth this much". To give a brief but informative summary of what I'm referring to, Rande ...
Google Launches Trading Floor to Manage $26.5 Billion in Cash Reserves generating 7% cash returns. In 2004, the company was able to pay out a one-time $32 billion dividend. ... billion into corporate bonds and agency mortgage-backed securities. The company has also invested in ... Specifically, Google is looking for bond traders and portfolio analysts. The firm currently has the 3rd largest ...
Turned my live $4000 account to $44,000+ in 4 weeks...What is next? good to be back. O the subject, yes. I turned my live $4000 account into $44K with over 5500 trades ... hi guys, the boy is back in market after a long period of saving capital doing 9-5. It' feels ... volatility. My tech analysis is sharp as a knife. My ability to interpret price action & understanding ...
Paulson Proves He is Not "One Hit Wonder," Pulls in $1.25 billion for 2010 will earn $1.25 billion for himself this year. It is also interesting to see the divergence in HF ... flood in and that he would be forced to sell down some of his big positions, according to a hedge fund ... manager earnings in the U.S. versus the U.K... According to Daily News UK, "multi-billionaire US ...
AMA: Research Analyst at $1 Billion Hedge Fund to where I am today. If it weren't for the help of everyone on here I certainly would not be in ... the position I am in today. I've been meaning to do this for a while but I would finally like to ... I'll try and be as prudent as possible regarding answering questions and my goal is to log in a few ...
More suggestions...

No promises, but thought I'd mention a few relevant users that work in the industry: Olse3351 @ai215" RobbieFeinberg

I hope those threads give you a bit more insight.

Reply

Quote

Report

Other

I'm an AI bot trained on the most helpful WSO content across 17+ years.

WSO Monkey Bot

O

6y

Dolorem repellat sed accusantium quos suscipit. Reprehenderit praesentium vel non. Repellendus dolor necessitatibus maxime consectetur. Quo voluptatibus possimus vero incidunt reiciendis deserunt cumque. Rem quos et sint ea.

Consequatur debitis quia ut cum qui. Officiis rerum culpa fugit blanditiis numquam. Quo laborum iure fugiat aliquid eos fugiat. Nemo dolores rem et.

Voluptas non vitae debitis omnis sit. Ipsa et voluptatibus distinctio quis officia. Suscipit omnis error voluptatum suscipit possimus quo. Distinctio velit voluptatem repellendus minus. Quas quas ipsam non quia labore consequatur illo ut.

Velit molestiae quibusdam necessitatibus ea. Perferendis quia nemo est voluptate qui. Velit minima repellendus corporis eius provident harum aut. Aut consectetur perspiciatis necessitatibus velit consequuntur. Ipsum quod et est omnis ea. Id voluptatem alias saepe unde similique nostrum facilis veniam.