McKesson Enters New $5 Billion Revolving Credit Facility

Details

The new facility, scheduled to mature in April 2031, includes a $4.5 billion sublimit for borrowings in Canadian Dollars, British Pound Sterling, and Euros. The agreement requires McKesson to maintain a total debt to Consolidated EBITDA ratio of no greater than 4.25x to 1.00, with a temporary step-up to 4.75x 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 new facility's interest rates are based on a margin over the base rate, SOFR rate, or relevant rate administrator for loans denominated in Euros, Sterling, or Canadian Dollars. The existing credit facilities were terminated upon the entry into the new agreement.

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About McKesson Corporation

McKesson Corporation is a leading healthcare services and information technology company. It plays a crucial role in the distribution of pharmaceuticals and medical products. The primary function of McKesson is to ensure the efficient delivery of healthcare products to pharmacies, hospitals, and other medical facilities, ensuring that millions of patients have access to the medications they need. It also provides specialized software and automated solutions that enhance operational efficiency in healthcare sectors. McKesson significantly impacts the pharmaceutical and healthcare industries by offering solutions that streamline supply chains and improve patient care. Its services encompass wholesale drug distribution, healthcare IT systems, and pharmacy management. With operations that extend globally, McKesson is integral to maintaining the integrity and reliability of healthcare supply networks. By handling a substantial portion of the pharmaceutical distribution in North America, McKesson Corporation has a vital market presence, emphasizing its importance in shaping healthcare logistics and innovation. Its efforts contribute to advancing healthcare delivery and responding to the evolving demands of the medical industry.