MCKESSON CORP (MCK): debt financing — McKesson enters new $4B revolver maturing 2027 and $500M term loan maturing 2025

MCKESSON CORP

$4.0B revolving credit facility matures Nov 2027, replaces $4.0B facility set to mature Sep 2024.
$500M unsecured delayed draw term loan matures Nov 2025; available for 90 days after closing.
Financial covenant requires total debt / Consolidated EBITDA ≤ 4.00x; temporary step-up to 4.50x for acquisitions ≥$500M.
No borrowings outstanding under the terminated facility; proceeds for general corporate purposes.
ESG targets (KPIs) may adjust facility fee and margins via amendment.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

MCKESSON CORP incurred term loan of up to $500 million with Toronto Dominion (Texas) LLC, as administrative agent at Term SOFR, a prime rate or alternative overnight rates as applicable plus agreed maturing November 2025.

Instrument: term loan
Principal: up to $500 million
Counterparty: Toronto Dominion (Texas) LLC, as administrative agent
Rate: Term SOFR, a prime rate or alternative overnight rates as applicable plus agreed
Maturity: November 2025
Event: incurrence

Exact text from the filing

to 1.00 (with a temporary step-up to 4.50x to 1.00 upon election by the Company after the consummation of an acquisition involving payment of cash consideration of at least $500 million). The remaining terms and conditions of the New Revolving Credit Facility are substantially similar to those previously in place under the Existing Credit Facility. The New

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Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

MCKESSON CORP incurred revolving credit of up to $4.0 billion with Bank of America, N.A., as administrative agent at Term SOFR for credit extensions denominated in US Dollars, the Sterling Overnigh maturing November 2027.

Instrument: revolving credit
Principal: up to $4.0 billion
Counterparty: Bank of America, N.A., as administrative agent
Rate: Term SOFR for credit extensions denominated in US Dollars, the Sterling Overnigh
Maturity: November 2027
Event: incurrence

Exact text from the filing

of credit issuers party thereto, Bank of America, N.A., as administrative agent, and the other parties thereto. The New Revolving Credit Facility replaced the Company’s existing $4.0 billion five-year senior unsecured revolving credit facility, dated as of September 25, 2019, as amended (the “Existing Credit Facility”), which was filed with the Securities and

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

MCKESSON CORP entered into New Revolving Credit Facility with Bank of America, N.A. as administrative agent and the lenders and letter of credit issuers party thereto valued at $4.0 billion (effective 2022-11-07).

Action: entry
Agreement: credit facility
Counterparty: Bank of America, N.A. as administrative agent and the lenders and letter of credit issuers party thereto
Value: $4.0 billion
Effective: 2022-11-07

Exact text from the filing

On November 7, 2022, McKesson Corporation (“McKesson” or the “Company”) entered into a Credit Agreement (the “New Revolving Credit Facility”) among the Company, as borrower, the lenders party thereto, the letter of credit issuers party thereto, Bank of America, N.A., as administrative agent, and the other parties thereto.

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

MCKESSON CORP terminated Existing Credit Facility (effective 2022-11-07).

Action: termination
Agreement: credit facility
Effective: 2022-11-07

Exact text from the filing

The New Revolving Credit Facility replaced the Company’s existing $4.0 billion five-year senior unsecured revolving credit facility, dated as of September 25, 2019, as amended (the “Existing Credit Facility”), which was filed with the Securities and Exchange Commission on September 27, 2019 as Exhibit 10.1 to McKesson’s Current Report on Form 8-K.

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

MCKESSON CORP entered into New Term Loan Credit Facility with Toronto Dominion (Texas) LLC as administrative agent and the lenders party thereto valued at $500 million (effective 2022-11-07).

Action: entry
Agreement: credit facility
Counterparty: Toronto Dominion (Texas) LLC as administrative agent and the lenders party thereto
Value: $500 million
Effective: 2022-11-07

Exact text from the filing

On November 7, 2022, the Company also entered into a Credit Agreement (the “New Term Loan Credit Facility”), among the Company, as borrower, the lenders party thereto, Toronto Dominion (Texas) LLC, as administrative agent and the other parties thereto.

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Source: SEC EDGAR

accession 0000927653-22-000100

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