OREANDA-NEWS. Walgreens Boots Alliance, Inc. (Nasdaq:WBA) today announced it has completed the placement of $5 billion of term loan facilities, evenly split between two tranches of $2.5 billion each, with three- and five-year maturities, respectively, and a $7.8 billion term loan bridge facility. These facilities replace the company’s previously reported $12.8 billion bridge facility commitment.

This financing has been put in place as part of the financing of Walgreens Boots Alliance’s proposed acquisition of Rite Aid Corporation (NYSE:RAD). Drawing under the facilities is subject to the closing of this acquisition.

“The term loan facilities constitute a key milestone in securing permanent financing for the proposed acquisition of Rite Aid,” said George Fairweather, Executive Vice President and Global Chief Financial Officer of Walgreens Boots Alliance, Inc. “We are very pleased with the high level of interest and support from our banking partners, which resulted in the oversubscription of the transaction. The $5 billion pre-payable term facilities provide us with diversification of funding sources and the flexibility to reduce leverage over time.”

The proposed acquisition by Walgreens Boots Alliance of Rite Aid, which was announced on 27 October 2015, is subject to approval of Rite Aid's stockholders and satisfaction of other customary closing conditions, including expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. The transaction is expected to close in the second half of calendar 2016.

About Walgreens Boots Alliance

Walgreens Boots Alliance (Nasdaq: WBA) is the first global pharmacy-led, health and wellbeing enterprise.

The company was created through the combination of Walgreens and Alliance Boots in December 2014, bringing together two leading companies with iconic brands, complementary geographic footprints, shared values and a heritage of trusted health care services through pharmaceutical wholesaling and community pharmacy care, dating back more than 100 years.

The company employs over 370,000* people and has a presence in more than 25* countries; it is the largest retail pharmacy, health and daily living destination in the USA and Europe. Including its equity method investments, Walgreens Boots Alliance is a global leader in pharmacy-led, health and wellbeing retail with over 13,100* stores in 11* countries. The company includes one of the largest global pharmaceutical wholesale and distribution networks with over 350* distribution centers delivering to more than 200,000** pharmacies, doctors, health centers and hospitals each year in 19* countries. In addition, Walgreens Boots Alliance is one of the world’s largest purchasers of prescription drugs and many other health and wellbeing products.

Its portfolio of retail and business brands includes Walgreens, Duane Reade, Boots and Alliance Healthcare, as well as increasingly global health and beauty product brands, such as No7, Botanics, Liz Earle and Soap & Glory.