What are the total aggregate principal amounts and interest rates for the new notes?

The offering consists of $650 million aggregate principal amount of 4.650% Notes due 2030, $650 million aggregate principal amount of 4.950% Notes due 2032, and $700 million aggregate principal amount of 5.250% Notes due 2035.

How are the new notes secured?

The Notes are unsecured and unsubordinated obligations of McKesson Corporation. They rank equally with all of the Company's existing and future unsecured and unsubordinated indebtedness.

What are the conditions under which McKesson might have to repurchase these notes?

McKesson will be required to offer to repurchase the Notes at 101% of their principal amount plus accrued interest if both a change of control event occurs and the Notes are downgraded below investment grade by each rating agency within a specified period, unless the Company has already redeemed the Notes.

MCK 8-K: Financial Events

Q: What is the purpose of this notes offering?

The primary purpose of this notes offering is to raise capital to fund McKesson Corporation's acquisition of a 70% controlling interest in Community Oncology Revitalization Enterprise Ventures, LLC, an internal business and administrative services organization associated with Florida Cancer Specialists & Research Institute, LLC.

Summary

McKesson Corporation (MCK) has announced the successful closing of a significant notes offering, raising a total of $2.0 billion. This offering comprises three tranches of senior notes: $650 million in 4.650% Notes due 2030, $650 million in 4.950% Notes due 2032, and $700 million in 5.250% Notes due 2035. The net proceeds from this issuance are earmarked for a strategic acquisition, specifically the purchase of a 70% controlling interest in Community Oncology Revitalization Enterprise Ventures, LLC. This move indicates McKesson's commitment to expanding its presence and capabilities within the oncology services sector.

Key Highlights

1McKesson Corporation raised a total of $2.0 billion through a multi-tranche notes offering.
2The offering includes $650M of 4.650% Notes due 2030, $650M of 4.950% Notes due 2032, and $700M of 5.250% Notes due 2035.
3Net proceeds of approximately $1.99 billion will be used to fund the acquisition of a 70% controlling interest in Community Oncology Revitalization Enterprise Ventures, LLC.
4The Notes are unsecured and rank equally with other unsecured and unsubordinated indebtedness of McKesson.
5The Indenture includes customary covenants, such as limitations on liens and sale/leaseback transactions.
6A change of control provision requires a repurchase offer at 101% of principal if combined with a rating downgrade by rating agencies.

MCKESSON CORP 8-K Report, Financial Obligation (May 30, 2025)

Summary

Key Highlights

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