NEW YORK (TheStreet) -- Shares of Walgreen Co. (WAG) are up 1.29% to $66.51 after it was reported that Walgreens Boots Alliance Inc. is planning to sell $8 billion of bonds in seven portions as it prepares to pay about $15.3 billion for the part of Alliance Boots it doesn't already own, Bloomberg reports.
The biggest part of the dollar-denominated offering will be $2 billion of 10-year, fixed-rate notes, sources told Bloomberg. Walgreen Co. previously controlled about 45% of Alliance Boots, the Swiss company that runs pharmacy and beauty stores in Europe.
It will pay about $5.29 billion in cash and $10 billion in Walgreen stock for the remaining stake, the Deerfield, Illinois-based company said in a statement today. Proceeds of the bond sale may help fund the purchase of the remainder of Alliance Boots and help refinance its borrowings, according to a regulatory filing.
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TheStreet Ratings team rates WALGREEN CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate WALGREEN CO (WAG) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."