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Express Scripts 2014 Annual Report
76
September2020SeniorNotesbeingredeemed,plus,ineachcase,unpaidinterestonthenotesbeingredeemedaccruedtothe
redemptiondate.TheSeptember2010SeniorNotes,issuedbyMedco,arejointlyandseverallyandfullyandunconditionally
(subjecttocertaincustomaryreleaseprovisions,includingsale,exchange,transferorliquidationoftheguarantorsubsidiary)
guaranteedonaseniorbasisbyusandmostofourcurrentandfuture100%owneddomesticsubsidiaries.
TheMay2011seniornotesconsistof$1,500.0millionaggregateprincipalamountof3.125%seniornotesdue
2016(the“May2011SeniorNotes”).TheMay2011SeniorNotesrequireinteresttobepaidsemi-annuallyonMay15and
November15andareredeemablepriortomaturityatapriceequaltothegreaterof(1)100%oftheaggregateprincipalamount
ofanynotesbeingredeemed,plusaccruedandunpaidinterest;or(2)thesumofthepresentvaluesoftheremainingscheduled
paymentsofprincipalandinterestonthenotesbeingredeemed,notincludingunpaidinterestaccruedtotheredemptiondate,
discountedtotheredemptiondateonasemiannualbasis(assuminga360-dayyearconsistingoftwelve30-daymonths)atthe
treasuryrateplus20basispointswithrespecttoanyMay2011SeniorNotesbeingredeemed,plusineachcase,unpaidinterest
onthenotesbeingredeemedaccruedtotheredemptiondate.TheMay2011SeniorNotes,issuedbyESI,arejointlyand
severallyandfullyandunconditionally(subjecttocertaincustomaryreleaseprovisions,includingsale,exchange,transferor
liquidationoftheguarantorsubsidiary)guaranteedonaseniorbasisbyusandmostofourcurrentandfuture100%owned
domesticsubsidiaries.
TheNovember2011seniornotes(the“November2011SeniorNotes”)consistof:
• $1,250.0millionaggregateprincipalamountof4.750%seniornotesdue2021(the“2021SeniorNotes”)
• $700.0millionaggregateprincipalamountof6.125%seniornotesdue2041(the“2041SeniorNotes”)
TheNovember2011SeniorNotesrequireinteresttobepaidsemi-annuallyonMay15andNovember15andare
redeemablepriortomaturityatapriceequaltothegreaterof(1)100%oftheaggregateprincipalamountofanynotesbeing
redeemed,plusaccruedandunpaidinterest;or(2)thesumofthepresentvaluesoftheremainingscheduledpaymentsof
principalandinterestonthenotesbeingredeemed,notincludingunpaidinterestaccruedtotheredemptiondate,discountedto
theredemptiondateonasemiannualbasisatthetreasuryrateplus45basispointswithrespecttoany2021SeniorNotesbeing
redeemedor50basispointswithrespecttoany2041SeniorNotesbeingredeemed,plusineachcase,unpaidinterestonthe
notesbeingredeemedaccruedtotheredemptiondate.TheNovember2011SeniorNotesarejointlyandseverallyandfullyand
unconditionally(subjecttocertaincustomaryreleaseprovisions,includingsale,exchange,transferorliquidationofthe
guarantorsubsidiary)guaranteedonaseniorunsecuredbasisbymostofourcurrentandfuture100%owneddomestic
subsidiaries.
In2014,$1,250.0millionaggregateprincipalamountof3.500%seniornotesdue2016wereredeemedusingthe
proceedsfromtheJune2014SeniorNotes(definedbelow).Totalcashpaymentsrelatedtotheredemptionofthesenoteswere
$1,321.5million,whichincluded$71.5millionofredemptioncostswhicharereflectedwithinthe“Interestexpenseandother”
lineitemoftheconsolidatedstatementofoperationsfortheyearendedDecember31,2014.Alsoin2014,$900.0million
aggregateprincipalamountof2.750%seniornotesdue2014maturedandwereredeemed.
TheFebruary2012seniornotes(the“February2012SeniorNotes”)consistof:
• $1,000.0millionaggregateprincipalamountof2.100%seniornotesdue2015(“February2015SeniorNotes”)
• $1,500.0millionaggregateprincipalamountof2.650%seniornotesdue2017(“February2017SeniorNotes”)
• $1,000.0millionaggregateprincipalamountof3.900%seniornotesdue2022(“February2022SeniorNotes”)
TheFebruary2015SeniorNotesrequireinteresttobepaidsemi-annuallyonFebruary12andAugust12.The
February2017SeniorNotesandtheFebruary2022SeniorNotesrequireinteresttobepaidsemi-annuallyonFebruary15and
August15.TheFebruary2012SeniorNotesareredeemablepriortomaturityatapriceequaltothegreaterof(1)100%ofthe
aggregateprincipalamountofanynotesbeingredeemed,plusaccruedandunpaidinterest;or(2)thesumofthepresentvalues
oftheremainingscheduledpaymentsofprincipalandinterestonthenotesbeingredeemed,notincludingunpaidinterest
accruedtotheredemptiondate,discountedtotheredemptiondateonasemiannualbasis(assuminga360-dayyearconsisting
oftwelve30-daymonths)atthetreasuryrateplus30basispointswithrespecttoanyFebruary2015SeniorNotesbeing
redeemed,35basispointswithrespecttoanyFebruary2017SeniorNotesbeingredeemed,or40basispointswithrespectto
anyFebruary2022SeniorNotesbeingredeemedplus,ineachcase,unpaidinterestonthenotesbeingredeemed,accruedtothe
redemptiondate.TheFebruary2012SeniorNotesarejointlyandseverallyandfullyandunconditionally(subjecttocertain
customaryreleaseprovisions,includingsale,exchange,transferorliquidationoftheguarantorsubsidiary)guaranteedona
seniorunsecuredbasisbymostofourcurrentandfuture100%owneddomesticsubsidiaries.
72