DOW JONES NEWSWIRES
Express Scripts Inc. (ESRX) priced the $3.9 billion of stock and
senior notes the pharmacy-benefits manager is selling to finance
much of the planned $4.68 billion acquisition of WellPoint Inc.'s
(WLP) drug-benefits business.
The 23-million-share offering was priced at $61, a 2.7% discount
to Thursday's closing price. The debt sale consists of $1 billion
in 3- and 5-year notes yielding 5.25% and 6.25%, respectively, and
$500 million in 10-year notes with a 7.25% yield.
Express Scripts in April said would pay for WellPoint's in-house
operation, NextRx - with $3.28 billion in cash and $1.4 billion in
stock. But the company later opted to pay all-cash to the nation's
largest health insurer by members. Express Scripts follows many
companies that are turning to the financial markets to raise cash
amid increased investor demand for corporate stock and debt.
The planned takeover - slated to close no sooner than September
- is expected to beef up Express Scripts' negotiating power with
drug makers while narrowing the gap between it and larger rivals
Medco Health Solutions Inc. (MHS) and CVS Caremark Corp. (CVS).
Express Scripts has nearly 250 million shares outstanding. Its
stock fell 0.7% premarket to $61.85.
-By Tess Stynes, Dow Jones Newswires; 201-938-2473;
tess.stynes@dowjones.com
