McKesson gets $5.5 billion 364-day bridge loan for Celesio acquisition

By Angela McDaniels

Tacoma, Wash., Jan. 29 - McKesson Corp. entered into a $5.5 billion 364-day senior bridge loan on Jan. 23, according to an 8-K filing with the Securities and Exchange Commission.

Goldman Sachs Bank USA and Bank of America Merrill Lynch are the bookrunners and lead arrangers. Bank of America, NA is the administrative agent. Goldman Sachs Bank USA is the syndication agent.

The initial interest rate is Libor plus 100 basis points to 175 bps, depending on the company's debt ratings. The margin over Libor steps up by 25 bps every 90 days.

The company said the bridge loan's terms are substantially similar to those of its revolving credit facility.

The company will use the bridge loan and cash on hand to acquire a 75.99% stake in Celesio AG from Franz Haniel & Cie. GmbH for €23.50 per share, to acquire €700 million of convertible bonds issued by Celsio Finance BV and to fund a voluntary tender offer for the Celesio shares not purchased in the Franz Haniel acquisition.

The acquisitions of the 75.99% stake and the convertibles are expected to close Feb. 6, after which McKesson will put in place permanent financing.

McKesson is a health-care services and information technology company based in San Francisco.

Frankfurt-based Celesio is a wholesale and retail company and provider of logistics and services to the pharmaceutical and health-care sectors.

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