CIBC Scores Its Biggest LBO Financing With Wittington-Boots Deal

Canadian Imperial Bank of Commerce is providing the majority of the financing to support Wittington Investments’ acquisition of Boots and its associated businesses, according to a person familiar with the matter, in what’s set to be the bank’s largest-ever single commitment to a leveraged borrower.

Wittington, the Canadian holding company for the billionaire Weston family, said Wednesday that it agreed to buy the UK pharmacy chain for $8.9 billion including debt from Sycamore Partners and the family of longtime Boots owner Stefano Pessina. CIBC and Morgan Stanley Senior Funding Inc., the lead arrangers, are providing financing for the acquisition, according to a release.

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While CIBC has made larger backings to investment-grade transactions, the Boots deal marks the biggest financing commitment ever made by the Toronto-based bank’s global leveraged finance group, said the person, who asked not to be identified because the information isn’t public.

The exact amount of debt financing hasn’t been disclosed. When Boots separated from Walgreens last year, Sycamore raised about $4.5 billion to fund the acquisition.

A CIBC spokesperson declined to comment.

Fairfax Financial, which is partnering with Wittington on the acquisition, agreed in an equity commitment letter to provide up to about $2.3 billion toward the purchase. Fairfax is expected to own 50% of Boots after the deal closes while Wittington will have operational control.