Walgreens Boots Alliance, Inc. (NASDAQ:WBA), a retail pharmacy giant with $152 billion in revenue and current market capitalization of $9.54 billion, has terminated two major credit agreements and initiated a new borrowing capacity, according to a recent SEC filing. On Thursday, April 24, 2025, the company’s subsidiary, Wilmot Retail, LLC, established an accounts receivable securitization facility with a capacity of up to $2.5 billion. The move was made to repay existing debts under two senior unsecured delayed draw term loan credit agreements, one due in November 2026 and another in January 2026, with initial amounts of $1.0 billion each.
The credit agreements, dated August 9, 2023, and December 19, 2022, were with Bank of America (NYSE:BAC), N.A., and Toronto Dominion (Texas) LLC, respectively. The new facility was used to pay off the outstanding amounts and terminate the commitments under these term loan facilities. According to InvestingPro data, the company carries total debt of $31.1 billion and maintains a current ratio of 0.61, indicating potential liquidity challenges.
This financial restructuring comes as the retail drugstore chain, headquartered in Deerfield, Illinois, navigates its ongoing business operations. InvestingPro analysis indicates the company’s overall Financial Health Score is currently weak, though its stock appears slightly undervalued based on Fair Value calculations. The company, which is incorporated in Delaware and operates under the SIC code for retail drug stores and proprietary stores, has not disclosed further details on the strategic reasons behind the termination of the previous agreements or the specific terms of the new accounts receivable facility.
The filing, dated Friday, April 25, 2025, was signed by Lanesha Minnix, Walgreens Boots Alliance’s Executive Vice President and Global Chief Legal Officer, confirming the completion of these financial transactions. For deeper insights into WBA’s financial health and detailed analysis, access the comprehensive Pro Research Report available exclusively on InvestingPro.
The information in this article is based on a press release statement.
In other recent news, Walgreens Boots Alliance has reached a settlement with the Department of Justice over allegations related to opioid dispensing, agreeing to pay $300 million over six years. This settlement aims to resolve ongoing legal challenges without admitting wrongdoing. In a significant corporate development, Walgreens announced its acquisition by Sycamore Partners, valuing the transaction at up to $23.7 billion. The agreement offers Walgreens shareholders $11.45 per share in cash, with a potential additional $3 per share from future monetization of VillageMD interests. Analysts from Raymond (NSE:RYMD) James and UBS have maintained neutral positions on Walgreens stock, with UBS raising the price target to $11.45. Jefferies also adjusted its price target to $11.45, maintaining a Hold rating. Walgreens’ privatization move is seen as a strategic effort to enhance operations and shareholder value. The acquisition is expected to conclude in the fourth quarter of 2025, subject to regulatory and shareholder approvals. Walgreens plans to announce its fiscal 2025 second-quarter earnings on April 8, 2025.
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