Walgreens Boots Alliance Settles Share Transactions Early

Walgreens Boots Alliance has settled on prepaid variable share transactions early, receiving $1.1 billion initially. The firm plans to utilize proceeds from a recent stock sale for debt reduction.

Date: 07-02-2025

AI Rating: 6

Early Settlement Impact: Walgreens Boots Alliance Inc. (WBA) has reached an agreement for an early settlement of prepaid variable share forward transactions with financial institutions. This involves the delivery of approximately 6.1 million shares of Cencora, Inc. (COR) and a cash payment of around $20 million. The decision to settle early reduces future obligations while providing liquidity.

Share Sales and Debt Management: The company has conducted a block trade sale of Cencora shares for approximately $265 million and an additional sale through a share repurchase yielding about $50 million. These transactions significantly lower WBA's ownership from about 10% to 6% in Cencora. The proceeds are earmarked for debt reduction and general corporate purposes, crucial for managing upcoming debt maturities in fiscal 2026.

The actions described reflect a strategic move towards enhancing financial stability. By divesting shares and focusing on debt management, Walgreens Boots Alliance aims to secure its financial position amidst challenging market conditions.

Stocks: WBA COR