Cencora Completes $1.8 Billion Senior Notes Offering

On December 9, 2024, Cencora, Inc. (NYSE: COR) finalized the sale of $500,000,000 in 4.625% Senior Notes due December 15, 2027 (2027 Notes), $600,000,000 in 4.850% Senior Notes due December 15, 2029 (2029 Notes), and $700,000,000 in 5.150% Senior Notes due February 15, 2035 (2035 Notes). These offerings were successfully completed, enabling the company to secure substantial financing through unsecured and unsubordinated obligations.

The 2027 Notes, 2029 Notes, and 2035 Notes were issued under respective Indentures, and the sale proceeds will be utilized primarily to fund the acquisition of Retina Consultants of America. In case the acquisition does not materialize by August 5, 2025, or is terminated as per the agreement terms, Cencora will be obligated to redeem the Notes.

The Notes hold equal priority in payment with existing and future unsecured obligations of the company and stand subordinated to subsidiary debts. Covenants within the Indentures restrict the company’s ability to create liens, engage in sale and leaseback transactions, and execute significant asset transactions. Events of default entail nonpayment, covenant breaches, failures related to other obligations, and instances of insolvency proceedings among other conditions.

Moreover, subsequent to terminating $1.8 billion in bridge financing commitments on December 9, 2024, Cencora will use the significant proceeds from the Notes’ issuance to extinguish the remaining bridge financing. The legal counsel’s opinion affirming the validity of the Notes has been furnished with the SEC filing.

The completion of this offering further solidifies Cencora’s position as a pharmaceutical solutions giant, committed to enhancing global healthcare standards. With an extensive global presence and a revenue exceeding $290 billion, Cencora remains dedicated to fostering positive health outcomes worldwide.

In adherence to regulatory requirements, this press release does not constitute an offer to sell or solicit the Notes, and any sales must comply with state and jurisdictional securities laws. Forward-looking statements involve risks and uncertainties and may differ from actual results due to various factors, as detailed in the company’s reports filed with the SEC.

Please note that detailed financial statements and relevant exhibition details can be found in the original 8-K filing submitted by Cencora.

This concludes the summary of Cencora’s recently completed senior notes offering.

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.