Alliance has recently taken additional actions intended to increase its cash position and preserve its financial flexibility in light of current uncertainty in the global markets, including the execution of new credit agreements and amendments to existing credit agreements. From April 1, 2020 through the date hereof, Walgreens Boots Alliance has entered into approximately $3.6 billion of new revolving credit facilities, including a $500.0 million credit facility it entered into on April 7, 2020 as a co-borrower and guarantor with one of its subsidiaries. As of April 10, 2020, no borrowings were outstanding under these new facilities. In addition, Walgreens Boots Alliance has, subject to the satisfaction of certain conditions, extended a $1.0 billion facility scheduled to mature in May 2020 to May 2021. We may incur additional debt in the future and the incurrence of such additional debt may have important consequences for you as a holder of the notes, including making it more difficult for us to satisfy our obligations with respect to the notes, a loss in the trading value of your notes, if any, and a risk that the credit rating of the notes is lowered or withdrawn.
The notes will be effectively subordinated to claims of any of our secured creditors.
The notes will be unsecured and unsubordinated debt obligations of Walgreens Boots Alliance, ranking equally in right of payment with other unsecured and unsubordinated debt of Walgreens Boots Alliance and effectively subordinated in right of payment to any secured debt to the extent of the value of the assets constituting the security. The indenture governing the notes permits us and our subsidiaries to incur secured debt under specified circumstances, and the amounts incurred could be substantial. If we incur any debt secured by our assets or assets of our subsidiaries, these assets will be subject to the prior claims of our secured creditors. In the event of a bankruptcy, liquidation, dissolution, reorganization or similar proceeding, these pledged assets would be available to satisfy secured obligations before any payment could be made on the notes. To the extent that such assets cannot satisfy in full any such secured obligations, the holders of such obligations would have a claim for any shortfall that would rank equally in right of payment with the notes. In that case, we may not have sufficient assets remaining to pay amounts due on any or all of the notes.
We conduct our operations through our subsidiaries and the notes will be structurally subordinated to any debt, liabilities and other obligations of our current and future subsidiaries.
The notes will be unsecured and unsubordinated debt obligations of Walgreens Boots Alliance, a holding company with no business operations of its own. Our assets primarily consist of direct and indirect ownership interests in, and our business is conducted through, our subsidiaries. Our subsidiaries are separate legal entities that are not guarantors of the notes and have no obligation to pay any amounts due under the notes or to make any funds available therefor, whether by dividend, loan or other payment. In addition, any payment of dividends, loans or other payments by our subsidiaries to us could be subject to statutory or contractual restrictions. Payments to us by our subsidiaries will also be contingent upon our subsidiaries’ earnings and business considerations. As a consequence, our debt, including the notes, will be structurally subordinated to existing and future debt, liabilities and other obligations of our existing and future subsidiaries with respect to the assets of such subsidiaries. As of February 29, 2020, the aggregate amount of debt of our consolidated subsidiaries, excluding intercompany debt, was approximately $10.6 billion. In addition, on April 7, 2020, we, as a co-borrower and guarantor, together with one of our subsidiaries, entered into the $500.0 million credit facility described above. As of April 10, 2020, no borrowings were outstanding under this facility.
In addition, our right to participate in any distribution of assets of any subsidiary upon its liquidation or reorganization or otherwise, and the ability of holders of the notes to benefit indirectly from that kind of distribution, is subject to the prior claims of creditors of that subsidiary, except to the extent, if any, we are recognized as a creditor of that subsidiary. All obligations of our subsidiaries will have to be satisfied before any of the assets of such subsidiaries would be available for distribution, upon a liquidation or otherwise.
As of February 29, 2020, Walgreens had approximately $1.7 billion aggregate principal amount of outstanding notes that are unconditionally guaranteed on an unsecured and unsubordinated basis by Walgreens Boots Alliance. As described above, the notes will be structurally subordinated to any claims on Walgreens’ assets. Additionally, in the event of a bankruptcy, liquidation, dissolution, reorganization or similar proceeding of Walgreens Boots Alliance, holders of the Walgreens notes would have a claim on any assets of Walgreens Boots Alliance that would rank equally in right of payment with the claim of holders of the notes offered hereby.
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