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Walgreens Boots (WBA; B1, BB Neg) Pays $107m fine to DoJ

CONSUMER STAPLES
  • It will pay $106.8m to resolve allegations it billed government for prescriptions never dispensed (accusations between 2009-2020). It had $703m cash on hand at the end of May.
  • Not the headline WBA needs right now - add on Kamala's policy uncertainty for the sector and we are left with not much good news - share price is at a 28yr low. Credit has had better news on 1) ability to expensively refi in the $ markets (did a $750 5NC2 with a 100bp NIC) and 2) $1.1b in {COR US Equity} stake sell-down to "primarily" shore up the BS.
  • 4Q earnings (3m to August) comes on 15th Oct (US pre-market). Please note guidance has stayed rough and its earnings has a recent run of bringing sizeable vol with it.
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  • It will pay $106.8m to resolve allegations it billed government for prescriptions never dispensed (accusations between 2009-2020). It had $703m cash on hand at the end of May.
  • Not the headline WBA needs right now - add on Kamala's policy uncertainty for the sector and we are left with not much good news - share price is at a 28yr low. Credit has had better news on 1) ability to expensively refi in the $ markets (did a $750 5NC2 with a 100bp NIC) and 2) $1.1b in {COR US Equity} stake sell-down to "primarily" shore up the BS.
  • 4Q earnings (3m to August) comes on 15th Oct (US pre-market). Please note guidance has stayed rough and its earnings has a recent run of bringing sizeable vol with it.