CVS Health Issues $3 Billion in Junior Subordinated Notes

On December 10, 2024, CVS Health Corporation disclosed that it successfully issued and sold a combined total of $3 billion in aggregate principal amount of junior subordinated notes. The Series A Junior Subordinated Notes, amounting to $2.25 billion, bear a fixed-to-fixed rate of 7.000% and are due in 2055. In addition, the Series B Junior Subordinated Notes, totaling $750 million, carry a fixed-to-fixed rate of 6.750% and are due in 2054. These notes were made available under CVS Health Corporation’s Registration Statement on Form S-3ASR, File No. 333-272200, which dates back to May 25, 2023.

The terms and conditions for the issuance of these notes are governed by a Subordinated Indenture dated May 25, 2007, involving CVS Health Corporation and The Bank of New York Mellon Trust Company, N.A., the trustee. Furthermore, the Series A Junior Subordinated Notes are supplemented by the Second Supplemental Indenture, while the Series B Junior Subordinated Notes are governed by the Third Supplemental Indenture. The company retains the option to release additional subordinated debt securities as needed under the Base Indenture.

Filed as part of this disclosure are the Base Indenture, the Supplemental Indentures, as well as the forms of the Notes, which can be referenced in the Exhibits section of the Current Report on Form 8-K. Included in the exhibits are legal opinions from Wachtell, Lipton, Rosen & Katz, along with consent acknowledgments.

The successful issuance of these Notes provides CVS Health Corporation with financial flexibility and an avenue for strategic initiatives moving forward, underscoring its commitment to prudent financial management and continued growth.

The logistical details of the transactions, along with the comprehensive documentation, are available for review as part of the formal filing made to the Securities and Exchange Commission.

This event signifies CVS Health Corporation’s proactive financial strategy and its effort to enhance long-term value for shareholders and investors.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read CVS Health’s 8K filing here.

CVS Health Company Profile

CVS Health Corporation provides health solutions in the United States. It operates through Health Care Benefits, Health Services, and Pharmacy & Consumer Wellness segments. The Health Care Benefits segment offers traditional, voluntary, and consumer-directed health insurance products and related services.