CVS Health is preparing to raise up to $2.5 billion through a bond sale, Bloomberg reported Dec. 2.
The company has engaged Barclays, Citigroup and Goldman Sachs to arrange investor calls, sources told the news outlet. The bonds will have hybrid characteristics, combining elements of debt and equity and are expected to be used to repurchase debt.
CVS also announced a plan to buy back up to $2 billion of bonds issued by CVS and its Aetna insurance unit, including approximately $950 million in notes due in March, along with longer-term bonds.
The bond sale and debt repurchase are a part of CVS' strategy to manage its debt load, which has grown due to acquisitions such as the $70 million purchase of Aetna in 2018, the report said.