McKesson gets $4 billion replacement revolving credit line due in 2024

By Wendy Van Sickle

Columbus, Ohio, Sept. 27 – McKesson Corp. entered into a $4 billion credit agreement on Wednesday, according to an 8-K filing with the Securities and Exchange Commission.

The credit facility is scheduled to mature in October 2020 and provides an up to $4 billion revolving line of credit and a $3.6 billion sublimit available in Canadian dollars, pounds sterling and euros.

Borrowings bear interest at Libor plus a margin ranging from 68 basis points to 110 bps, and the facility fee ranges from 7 bps to 15 bps, depending on the company’s debt ratings.

The new credit facility replaces the company’s existing $3.5 billion five-year senior revolving credit facility dated Oct. 22, 2015. There were no borrowings outstanding under the existing facility at the time of its termination.

Like the previous facility, the new facility requires that the company maintain a debt-to-capital ratio of no greater than 65%.

BofA Securities, Inc., Barclays Bank plc, Citigroup Global Markets Inc., Goldman Sachs Bank USA, JPMorgan Chase Bank, NA, Wells Fargo Securities, LLC and HSBC Securities (USA) Inc. are joint lead arrangers and joint bookrunners with Bank of America, NA as administrative agent. Barclays Bank, Citibank, NA, Wells Fargo Bank, Goldman Sachs, JPMorgan and HSBC are co-syndication agents.

McKesson is a San Francisco-based health-care services and information technology company.

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