Express Scripts (ESRX) Prices Offerings of Common Stock, Senior Notes: 23M Shares at $61/Share

June 5, 2009 9:28 AM EDT

Express Scripts, Inc. (Nasdaq: ESRX) announced today that it has successfully priced its public offerings of common stock and senior notes. The offerings were made pursuant to the Company's registration statement and prospectuses filed with the SEC.

The Company announced that it has agreed to sell 23 million shares of its common stock at a public offering price of $61 per share. The Company has also granted the underwriters a 30-day option to purchase up to an additional 3.45 million shares of its common stock on the same terms and conditions, solely to cover over-allotments, if any.

The Company also announced that it priced a $2.5 billion underwritten public offering of senior notes, including $1 billion aggregate principal amount of 5.250% senior notes due 2012; $1 billion aggregate principal amount of 6.250% senior notes due 2014 and $500 million aggregate principal amount of 7.250% senior notes due 2019. The Company will pay interest on the notes semi-annually on June 15th and December 15th of each year, beginning on December 15, 2009. The notes will be jointly and severally and fully and unconditionally guaranteed on a senior unsecured basis by certain of the Company's current and future wholly owned domestic subsidiaries.

The Company intends to use the net proceeds from the offerings to finance a portion of the $4.675 billion purchase price for the previously announced acquisition of WellPoint's pharmacy benefit management business.

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