CVS to sell/lease back Sav-On, Osco properties

Woonsocket-based CVS Corp. plans to sell off a “substantial portion” of the real estate obtained in its purchase of part of Albertson’s Inc., probably in the fourth quarter. CVS said it intends to lease back the property after the sale.

The news came in a company filing Tuesday with the U.S. Securities and Exchange Commission. The drugstore chain, the nation’s second-largest, told the SEC it will use the money to pay off a $1 billion loan.

In June, CVS acquired 700 Sav-On and Osco drugstores plus a distribution center from Albertson’s, one of the nation’s largest grocery chains.

It financed the $2.93 billion purchase by taking out a bridge loan and issuing commercial paper. In the third quarter, CVS told the SEC, it plans to refinance some of that commercial paper with longer-term debt.

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