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Stock impact report

CVS Starts Bond Sale Days After Cutting 2024 Outlook [BNN Bloomberg (Canada)]

Barclays PLC (BCS) 
Company Research Source: BNN Bloomberg
The drug-store heavyweight and health insurer is offering notes in as many as five parts, according to a person with knowledge of the matter. Size details have yet to be disclosed, but CreditSights analysts are estimating total issuance will be $4 billion to $5 billion. The longest portion of the deal, a 30-year security, may yield 1.75 percentage points above Treasuries, said the person, who asked not to be identified as the details are private. Proceeds may be used for a range of general corporate purposes including capital expenditures and repaying notes maturing this year. CVS's outlook and latest results were hurt by increased medical costs in the Medicare insurance segment. The same is being faced by fellow insurers that sell Medicare Advantage plans, private versions of the US government health program for seniors, as more older adults seek treatments they delayed due to the pandemic. That's not CVS's sole issue as retail drugstores in general have been under pressure an Show less Read more
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