JPMorgan Chase & Co. is sounding out investors on a potential high-yield bond sale by Walgreens Boots Alliance Inc. to address the recently downgraded drug-store chain’s near-term debt maturities, according to people familiar with the matter.
Early pricing discussions involve a yield in the 7.5% area, said the people, who asked not to be identified because the information is private. Deal size and tenor have yet to be determined. Walgreens has a note with $1.16 billion outstanding that matures Nov. 18 and trades near par, plus a £300 million ($387 million) bond due in late 2025, according to data compiled by Bloomberg.