Summary
McKesson Corporation (MCK) announced the issuance and sale of $500,000,000 aggregate principal amount of its 5.250% Notes due 2026. These unsecured and unsubordinated notes were issued on February 15, 2023, bearing an annual interest rate of 5.250%, with semi-annual interest payments commencing August 15, 2023. The net proceeds from this offering are expected to be approximately $497.8 million, intended for general corporate purposes, which may include debt repayment. Investors should note the terms of redemption, which allow McKesson to redeem the notes under specific conditions including a make-whole premium before February 15, 2024, and at par thereafter. The indenture includes covenants limiting the company's ability to incur certain liens or engage in sale and leaseback transactions, and provides for a repurchase option for noteholders in the event of a change of control coupled with a credit rating downgrade. These notes are being offered under McKesson's existing shelf registration statement.
Key Highlights
- 1McKesson issued $500 million in 5.250% Notes due 2026.
- 2The notes are unsecured and unsubordinated debt.
- 3Interest payments are semi-annual, starting August 15, 2023.
- 4The company expects to receive approximately $497.8 million in net proceeds.
- 5Proceeds are designated for general corporate purposes, potentially including debt repayment.
- 6Notes are redeemable at McKesson's option, with a make-whole premium before February 15, 2024.
- 7A change of control event combined with a credit rating downgrade triggers a 101% repurchase offer for noteholders.