<ul><li>The recent acquisition of Walgreens Boots Alliance by private equity firm Sycamore Partners is drawing scrutiny due to the high level of debt financing involved and questions surrounding Sycamore’s equity commitment.</li><li>According to a Securities and Exchange Commission (SEC) filing, 83.4% of the financing for the Walgreens buyout is debt, totaling $22.5B. This is more than double the average debt level (41%) used in private equity acquisitions last year.</li><li>The non-profit watchdog Private Equity Stakeholder Project (PESP) has raised concerns about the leveraged buyout of Walgreens, highlighting potential risks such as increased bankruptcy risk, jeopardized patient care, and job insecurity.</li><li>PESP also highlights Sycamore Partners' history of bankruptcies at portfolio companies, emphasizing that the buyout could have a negative impact on Walgreens' 312,000 employees, access to prescription drugs, and the communities it serves.</li></ul>

Walgreens PE Buyout Heavily Reliant on 83% Debt, Raising Concerns About Financial Stability

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