Commentary & Deal Flow

+++Corrects TLB final tranche sizes and typo on the EUR tranche size in the final terms line in the story+++

Boots Group Finco LP/The Boots Group Luxco Sarl (BOOTSFN) U$$1.25bn (down from US$2bn) equivalent 144A/Reg S sr sec notes 2-part. B1/B+/BB (stable/stable/stable). Via GS (B&D EUR & GBP)/UBS (B&D US$) jt physical books/JPM/Citi/DB/WFS/Mizuho/PNC/RBC/CIBC/Citizens/Scotia/TD/BNP/FITB/TSI/USB jt books. No reg rights. List ISE. NY law.

- EUR650m (US$750m equivalent) (from minimum US$750m and US$750m equivalent) due 2032 (7y). NC3 (MWC B+50bp). Equity claw:3y 40%. Special call: 10% per year the first 3 years at 103. CoC at 101. Denoms: 100x1. IPT: 6.00% area. Revised IPT: 5.75%-6.00%. Price talk: 5.50%-5.75%. Final terms EUR650m (US$750m equiv) at 5.375%.

- GBP375m (US$500m equivalent) (from minimum US$500m and US$750m equivalent) due 2032 (7y). NC3 (MWC G+50bp). Equity claw:3y 40%. Special call: 10% per year the first 3 years at 103. CoC at 101. Denoms: 100x1. IPT: 8.00% area. Revised IPT: 7.75%-8.00%. Price talk: 7.50%-7.75%. Final terms: GBP375m (US$500m equiv) at 7.375%.

Dropped: US$500m due 2032 (7y). NC3 (MWC T+50bp). Equity claw:3y 40%. Special call: 10% per year the first 3 years at 103. CoC at 101. Denoms: 200x1. IPT: Mid-high 7s.

Total debt size increased to US$4.5b (from $4.25bn) equiv. Did investor call at 2pm UKT/9am NYT 07/15. Books closed at 5pm UKT/12pm NYT 07/17. Reconfirms due by 1pm UKT/8am NYT 07/18. Pricing  07/18, concurrently with the term loan, originally pricing 07/22. UOP: along with US$3.25bn (up from US$3bn and US$2.25bn) equivalent (US1.50bn (up from US$1bn minimum and US$750m), EUR1.075m (US$1.25bn equiv) (up from US$1bn minimum and US$1bn) equivalent in EUR, and GBP375m (US$500m equivalent) (from US$500m and US$500m) sr sec term loans, and US$950m (down from US$1.2bn) pfd equity via Goldentree, to fund the LBO of Boots, which will be spun off from Walgreens Boots Alliance (WBA) by Sycamore Partners for US$11.45 per share and one divested asset proceeds right (up to $3 per DAP right (or approx $2.7bn total) from the future monetization of VillageMD Business) for $10bn equity value or a potential total value of up to $23.7bn, including net debt and opioid settlements. (US$500m tranche moved to the US$ TLB, US$250m equivalent downsize in the GBP tranche was moved to the EUR TLB, and then the US$250m TLB upsize reduced the pfd equity). Sycamore will contribute US$2.5bn in equity. Biz: UK based pharmacy chain. (Acquisition announced 03/06/25).

Netroadshow direct link: https://urldefense.com/v3/__https:/www.netroadshow.com/nrs/home/*!/?show=4bad713c__;Iw!!O2kDR7mm-zSJ!p15OEkS-zfiqY6i4rcDyYdWZJg-8-EBKHRzujEPaZtlJQx-GRFJAbMJv4a0TOd2AHVJBQ3bQEbwCzx8$. Access code: 2025-Boots.