Alliance Boots successfully extends loan maturities

Alliance Boots has successfully extended the maturities on existing loan facilities worth more than five billion pounds.

The loans, which represent over 80 per cent of the company's private senior lending, were due to mature shortly before the August 2015 deadline for Walgreen to fully merge with the UK pharmacy chain.

Lenders representing Alliance Boots have agreed to extend the facilities by two to three years, with staggered maturities starting in 2016.

"Our diverse lender group have been hugely supportive, enabling us to extend loans at attractive rates," said George Fairweather, group finance director at Alliance Boots.

He described the agreements as "a powerful recognition of our ongoing strong financial performance".

The financing can now stay in place if Walgreen exercises its option to acquire the remaining 55 percent of Alliance Boots. The two companies announced details of their strategic partnership in June, when Walgreen acquired its 45 percent stake for $6.7 billion (4.1 billion pounds) in cash and stock.