8-KMaterial AgreementsFinancial EventsExhibits & Filings

MCKESSON CORP 8-K Report, Material Agreement (Apr 28, 2026)

Filed April 28, 2026For Securities:MCK

Summary

McKesson Corporation (MCK) announced on April 28, 2026, the execution of a new, larger revolving credit facility. This new facility, totaling $5.0 billion, replaces two previous credit agreements with a combined capacity of $5.0 billion. The new agreement extends the maturity date to April 2031, providing enhanced long-term financial flexibility. Crucially, the new credit facility introduces a financial covenant requiring McKesson to maintain a total debt to Consolidated EBITDA ratio of no greater than 4.25x, with a temporary step-up to 4.75x allowed following significant acquisitions. This covenant is important for investors as it sets a clear leverage limit, though it excludes the Medical-Surgical Solutions segment. The company had no outstanding borrowings under its previous facilities at the time of this transition, indicating a proactive approach to its capital structure.

Key Highlights

  • 1McKesson entered into a new $5.0 billion revolving credit facility maturing in April 2031.
  • 2The new facility replaces previous credit lines totaling $5.0 billion ($1.0 billion 364-day and $4.0 billion five-year).
  • 3The company had no outstanding borrowings under the terminated credit facilities.
  • 4A new financial covenant requires a total debt to Consolidated EBITDA ratio of no greater than 4.25x.
  • 5A temporary step-up in the leverage ratio to 4.75x is permitted after acquisitions involving at least $500 million in cash consideration.
  • 6The Medical-Surgical Solutions segment's debt and EBITDA are excluded from the leverage covenant calculation.
  • 7The new facility offers flexibility with a sublimit for borrowings in Canadian Dollars, British Pound Sterling, and Euros, and can be increased further.

Frequently Asked Questions

The new $5.0 billion revolving credit facility provides McKesson with increased long-term financial flexibility and extends its borrowing capacity maturity to April 2031. It replaces older facilities, indicating a strategic update to the company's capital structure.

The primary financial covenant requires McKesson to maintain a total debt to Consolidated EBITDA ratio not exceeding 4.25x. This ratio can temporarily increase to 4.75x if the company completes an acquisition with at least $500 million in cash consideration. Importantly, the debt and EBITDA from the Medical-Surgical Solutions segment are excluded from this calculation.

No, the filing explicitly states that there were no borrowings outstanding under the existing credit facilities at the time they were terminated. This suggests McKesson entered into the new facility with a clean slate and is managing its debt proactively.

The new facility is for $5.0 billion, the same total capacity as the combined previous facilities ($1.0 billion + $4.0 billion). However, the maturity has been extended significantly, with the new facility due in April 2031, compared to the previous maturities in May 2026 and November 2029.