Walgreens could sell 5-year notes

DEERFIELD - Walgreen Co., the largest U.S. drugstore chain, plans to sell five-year notes in a benchmark offering, according to a person familiar with the transaction. The notes, which will be used to repay short-term debt, may be priced to yield between 175 basis points and 180 basis points more than U.S. Treasuries of a similar maturity, said the person, who declined to be identified because terms aren't set. A basis point is 0.01 percentage point. The notes include a so-called poison put that would allow investors to sell them back at 101 cents on the dollar if there is a change of control and a ratings cut to below investment grade at the company, the person said. A benchmark sale typically means at least $500 million in size.