Drugstore chain CVS will be able to pay back the money borrowed for its $69 billion takeover of health-insurer Aetna sooner than expected, thanks to a GOP tax break that’s yielding an extra $1.2 billion in cash for the pharmacy chain this year.
At least half that money, or about $600 million, will be used for debt repayment, Chief Financial Officer David Denton told investors after the Woonsocket, R.I.-based company reported fourth-quarter earnings on Thursday. That, coupled with a freeze on dividend hikes and suspension of stock-buybacks, will help return the prescription-drug distributor to a leverage ratio of 3.5 within two years of completing the Aetna purchase, he said.
“We have a degree of financial flexibility that is unexpect…
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